Legal Definitions - WARN

The term WARN Act stands for the Worker Adjustment and Retraining Notification Act. It is a federal law in the United States designed to protect workers, their families, and communities by requiring most employers to provide advance notice of significant employment losses. Specifically, it mandates that employers with 100 or more employees give at least 60 calendar days' written notice before a plant closing or a mass layoff. This notice period allows affected employees time to prepare for the loss of their jobs, seek new employment, and, if necessary, pursue retraining opportunities.

Here are some examples illustrating how the WARN Act applies:

• Example 1: Plant Closure

  A large textile manufacturer decides to permanently close its production facility in North Carolina, which employs 350 people. Due to economic pressures, the company plans to cease all operations at this site within three months. Under the WARN Act, the manufacturer would be required to provide all 350 employees with at least 60 days' advance written notice before the facility officially closes. This notice allows the workers to begin searching for new jobs or exploring retraining programs before their current employment ends.

• Example 2: Mass Layoff

  A major software development company, headquartered in Seattle, announces a significant restructuring that will result in the elimination of 250 positions across various departments. These layoffs are not tied to a facility closure but represent a substantial reduction in force at a single employment site. Because this constitutes a mass layoff involving more than 50 employees at one site (and meets other WARN Act thresholds), the company must issue a 60-day advance notice to all 250 affected employees. This gives them a crucial window to manage their finances and actively seek new employment opportunities.

• Example 3: Facility Relocation

  An administrative services firm decides to consolidate its operations, closing its smaller branch office in Denver, which has 120 employees, and moving those job functions to a larger hub in Phoenix. While some employees might be offered relocation, the closure of the Denver office means the termination of employment for those who cannot or choose not to move. The WARN Act would require the firm to provide 60 days' notice to all 120 employees at the Denver branch, informing them of the impending closure and their potential job loss at that specific location, regardless of whether relocation is an option for some.