The WARN Act is a federal law that requires many employers to give 60 days' written notice before a plant closing or a mass layoff. The Worker Adjustment and Retraining Notification Act generally covers employers with 100 or more employees, and workers can sue for back pay and benefits when the notice never came. If you just heard about layoffs at work, this guide explains who is covered and what to do next.
What does the WARN Act require?
Congress passed the law in 1988. The core rule is in 29 U.S.C. 2102: an employer "shall not order a plant closing or mass layoff until the end of a 60-day period after the employer serves written notice." So the notice must be in writing, and the clock runs before the layoffs happen, not after.
The law does not stop a company from closing or cutting jobs. It gives workers time to look for new work and plan. The statute also says a federal court has no authority to enjoin (legally block) a plant closing or mass layoff. The remedy for skipping notice is money, which is covered below.
WARN rights add to any other rights you have. If your contract or another statute requires notice, the WARN period runs at the same time as that notice, not on top of it (29 U.S.C. 2105).
Which employers does the WARN Act cover?
The statute defines a covered employer as a business enterprise that employs either of these:
100 or more employees, not counting part-time employees
100 or more employees who together work at least 4,000 hours per week, not counting overtime hours
The Department of Labor's regulation adds that nonprofit organizations of that size are covered, while regular federal, state, local and tribal governments are not. The second test matters because part-time workers count there. A company with 80 full-timers and 40 part-timers can still be covered if the whole group works 4,000 hours a week.
Who is a part-time employee? Under 29 U.S.C. 2101(a)(8), it is someone employed for an average of fewer than 20 hours per week, or someone who has worked for the employer fewer than 6 of the 12 months before the date notice is due. Part-time workers are left out of the headcounts that decide whether a closing or layoff is big enough, but the regulation says they are still due notice if they lose their jobs. The Department of Labor's regulation at 20 CFR part 639 says "affected employees" includes managerial and supervisory employees but not business partners.
What counts as a plant closing or a mass layoff?
Both terms are defined by numbers, measured at a "single site of employment." The numbers come from section 2101(a)(2) and (3) of the statute.
Event
What it is
Minimum number affected in any 30-day period
Plant closing
Permanent or temporary shutdown of a single site, or of one or more facilities or operating units within it
50 or more employees, not counting part-time employees
Mass layoff
A reduction in force that is not a plant closing
At least 33 percent of the employees and at least 50 employees, or at least 500 employees (part-time employees excluded from the counts)
A 40-person layoff at a site with 200 workers is neither. A 60-person layoff at that same site is not a mass layoff either, because 33 percent of 200 is 66. A layoff of 500 people qualifies even if that is a small share of the site.
The 90-day rule
Employers cannot dodge the numbers by splitting cuts into small rounds. Under section 2102(d), if two or more groups at one site each fall below the minimum but together exceed it within any 90-day period, the cuts count as one plant closing or mass layoff. The exception is when the employer shows the cuts came from separate and distinct actions and causes and were not an attempt to evade the law.
What is an employment loss?
Only an "employment loss" counts toward the numbers. The statute defines it as a termination other than a firing for cause, a voluntary departure, or retirement; a layoff lasting more than 6 months; or a cut in hours of more than 50 percent in each month of any 6-month period. There is a transfer exclusion, but only when the closing or layoff results from relocating or consolidating part or all of the business. In that case an employee is not treated as having an employment loss if, before the closing or layoff, the employer offered a transfer within reasonable commuting distance with no more than a 6-month break, or offered a transfer to any site with no more than a 6-month break and the employee accepted within 30 days of the offer or of the closing or layoff, whichever is later (section 2101(b)(2)).
Who has to receive the 60-day notice?
Under section 2102(a), the written notice must go to each representative of the affected employees (usually a union) or, if there is none, to each affected employee. A copy also goes to the State or the entity the State designated to carry out rapid response activities, and to the chief elected official of the local government where the closing or layoff will happen.
When can an employer give less than 60 days' notice?
There are three narrow exceptions in section 2102(b) and the regulation at section 639.9. The regulation says the employer bears the burden of proof that the conditions for an exception were met.
Faltering company: the employer was actively seeking capital or business that could have avoided the shutdown, and reasonably and in good faith believed that giving notice would have blocked it. This exception applies to plant closings, not mass layoffs, and the regulation says it should be narrowly construed.
Unforeseeable business circumstances: the closing or layoff was caused by business circumstances that were not reasonably foreseeable when notice would have been required.
Natural disaster: the statute says no notice is required when a plant closing or mass layoff is due to any form of natural disaster, such as a flood or earthquake. The regulation adds that the employer must show the job losses were a direct result of the disaster, and it must still give whatever notice is practicable, even if that comes after the fact.
An employer relying on any of these exceptions must give as much notice as is practicable and, at that time, a brief statement of the basis for the shorter notice (section 2102(b)(3)). Separately, section 2103 exempts closings of temporary facilities and the end of a particular project when workers were hired knowing the job was limited to that, and also strikes and lockouts not meant to evade the law.
What if the business was sold?
The seller is responsible for notice of any plant closing or mass layoff up to and including the effective date of the sale. After that date, the buyer is responsible. Under section 2101(b)(1), a seller's employees (other than part-time employees) as of the sale date are treated as the buyer's employees immediately afterward.
What can workers recover under the WARN Act?
An employer that orders a plant closing or mass layoff in violation of the notice rule is liable to each aggrieved employee for back pay for each day of violation and for benefits under an employee benefit plan, including medical expenses that the plan would have covered. The back pay rate is not less than the higher of the average regular rate over your last 3 years or your final regular rate. Liability is figured for the period of the violation, up to a maximum of 60 days, and never more than half the number of days you worked for the employer (29 U.S.C. 2104).
The employer gets credit for wages it paid for that period and for any voluntary and unconditional payment that no legal obligation required. A court may reduce the amount if the employer proves it acted in good faith and had reasonable grounds to believe it was not violating the law. For background on severance, see our guide to severance pay.
An employer that fails to notify the local government faces a civil penalty of not more than $500 for each day of violation. That penalty does not apply if the employer pays each aggrieved employee what it owes within 3 weeks of ordering the shutdown or layoff.
Where do you sue?
The statute lets a worker sue for themselves or for other similarly situated people, in any federal district court where the violation is alleged to have occurred or where the employer does business. The court may award the prevailing party a reasonable attorney's fee. The Department of Labor's WARN page says the federal court "solely enforces the Act" and that the Department offers compliance assistance. The statute makes its remedies exclusive, so the way to recover back pay is a lawsuit, not an agency complaint.
Do states have their own WARN laws?
Many states have so-called mini-WARN laws, and their thresholds and notice periods can differ from the federal ones. This article does not cover any state's version, so check with your state labor department or workforce agency to see whether one applies to you.
What to do if you were laid off or expect to be
Keep any notice you received, along with the envelope or email it came in. Dates matter.
Write down what you know: the date you heard about the layoff, your last day, how many coworkers were let go at your location, and any reason given for short notice.
Ask HR in writing whether the company considers WARN to apply and, if it gave short notice, what basis it relies on.
Contact your state's dislocated worker unit or rapid response office and ask what help it offers and whether it received an employer notice.
Do not wait to find out where you stand. The WARN Act itself does not state a filing deadline for a lawsuit, so confirm the time limit that applies to you with your state or a licensed attorney.
Your state and city matter. Federal law is the floor — many states and cities require higher pay, more leave, and broader protections. Always check your state’s rules (and any local ordinances) in addition to the federal laws above. This is general legal information, not legal advice.
Frequently asked questions
What is the WARN Act in simple terms?
It is a federal law that makes covered employers give 60 days' written notice before a plant closing or mass layoff. The notice goes to affected workers or their union, the state rapid response entity, and the local chief elected official. If the employer skips it, workers can sue for back pay and benefits for up to 60 days.
How many employees does a company need to be covered by WARN?
The statute covers a business enterprise with 100 or more employees, not counting part-time employees, or 100 or more employees who together work at least 4,000 hours per week, not counting overtime. Part-time workers count toward the second test. Smaller companies are not covered by the federal law, though a state law may reach them.
How many people have to be laid off for WARN to apply?
A plant closing needs 50 or more employees to lose their jobs at one site within 30 days. A mass layoff needs at least 33 percent of the site's employees and at least 50 people, or at least 500 people. Part-time employees are excluded from these counts. Separate rounds within 90 days can be added together.
Can I sue my employer for violating the WARN Act?
Yes. The statute lets you sue in a federal district court, for yourself or for others in the same situation. You may recover back pay and benefits for each day of violation, up to 60 days. The Department of Labor says the federal court solely enforces the Act, so the path to back pay is a lawsuit, not an agency complaint.
Are there exceptions that let an employer give less than 60 days' notice?
Yes. A faltering company seeking capital can give less notice for a plant closing, but not for a mass layoff. Unforeseeable business circumstances can also shorten notice, and the statute excuses notice for a natural disaster. In every case the employer must still give as much notice as is practicable, with a brief statement of why the notice was short.
Does my state have its own WARN law?
Many states have mini-WARN laws with different thresholds from the federal Act. This article does not describe any single state's law. Check your state labor department or workforce agency to learn whether a state notice law applies to your layoff in addition to the federal one, and what it requires.
Does severance pay count against what the employer owes under WARN?
The statute reduces what the employer owes by wages paid for the violation period and by voluntary and unconditional payments that no legal obligation required. Whether a particular severance payment counts depends on the facts, such as whether a contract or plan required it. Ask in writing how the employer treated any payment.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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