Legal Definitions - Worker Adjustment and Retraining Notification Act (WARN Act)

The Worker Adjustment and Retraining Notification Act, commonly referred to as the WARN Act, is a United States federal law that mandates certain employers to provide advance notice to employees, state dislocated worker units, and local government officials before a plant closing or mass layoff. This notice period is typically 60 calendar days. The primary goal of the WARN Act is to give affected workers and their families sufficient time to prepare for the impending job loss, seek new employment, and access necessary retraining programs.

Here are some examples illustrating how the WARN Act applies:

• Example 1: Factory Relocation

  A large automotive parts manufacturer decides to close its assembly plant in Ohio and move all production to a new facility in Mexico. This decision will result in the termination of all 500 employees at the Ohio plant.

  This scenario demonstrates a plant closing under the WARN Act. Because the entire facility is ceasing operations and a significant number of employees will lose their jobs, the manufacturer is legally obligated to provide at least 60 days' advance notice to its employees, as well as to state and local government officials, allowing workers time to seek new employment or retraining.

• Example 2: Corporate Restructuring

  A major financial services company undergoes a significant corporate restructuring, leading to the elimination of its entire mortgage processing department, which employs 250 people at its Dallas office. While other departments remain operational, this specific department is being dissolved.

  This situation illustrates a mass layoff. Even though the company itself is not closing, the termination of a substantial number of employees from a single employment site within a specific timeframe triggers the WARN Act. The company must provide the required 60-day notice to the affected mortgage processing employees, giving them a crucial window to plan their next career steps.

• Example 3: Economic Downturn in Retail

  Due to a prolonged economic recession and declining consumer spending, a national bookstore chain decides to permanently close 15 of its underperforming stores across three different states. Each store employs between 20 and 40 individuals, resulting in a total of over 400 layoffs nationwide.

  This example also falls under the definition of a mass layoff, particularly when considering the cumulative impact across multiple sites. The WARN Act would require the bookstore chain to provide 60 days' notice to the employees at each of the closing stores, as well as to the relevant state and local authorities, enabling these workers to prepare for their job loss and explore other opportunities.