With layoffs rising in sectors like manufacturing and business services, navigating the Worker Adjustment and Retraining Notification (WARN) Act isn’t just a courtesy—it’s a legal minefield. One missing phone number in a notice can lead to litigation.Here is a condensed, actionable 4-step plan to ensure your business remains compliant.1. Determine if WARN Applies
The Act generally covers private businesses with more than 100 full-time employees. You must provide 60 days of advance written notice if any of the following occur within a 90-day window:
- Plant Closings: Impacting 50+ employees at a single site.
- Mass Layoffs: Impacting at least 33% of the workforce (minimum 50 people) at a single site.
- Large-Scale Layoffs: Impacting 500+ employees, regardless of percentage.
Note on “Part-Time”: For WARN purposes, employees are part-time if they work less than 20 hours per week or have been employed for less than 6 of the last 12 months preceding the notice date. They don’t count toward the 100-employee threshold.
2. Account for Remote Work & State Laws
Don’t assume federal law is the only hurdle.
- Check State “Mini-WARN” Laws: At least 18 states (including CA, NY, and OH) have stricter thresholds or different triggers than federal law.
- The Remote Factor: Remote workers are usually tied to the “site” from which work is assigned. Best practice: Calculate your numbers both with and without remote staff to see if you trigger notice requirements in either scenario.
3. Draft a Precise Notice
Federal law is incredibly specific. Your written notice to employees must include:
- Status: Whether the action is permanent or temporary, and if the entire facility is closing.
- Timeline: The specific date layoffs begin and the specific date the employee will be terminated (or a 14-day window).
- Bumping Rights: A statement on whether employees can displace others based on seniority.
- Contact Info: The name and phone number of a specific company official for questions.
4. Notify Authorities & Manage Culture
Compliance extends beyond your internal staff.
- Government Notice: You must notify the local chief elected official and the State Rapid Response Dislocated Worker Unit.
- Internal Messaging: Address the “remaining 80%.” Proactively explain the business rationale and demonstrate that exiting colleagues are being treated with respect. This maintains morale and trust for those staying behind.
Potential Exceptions: Notice periods may be shortened for “faltering companies” seeking capital, natural disasters, or unforeseen business circumstances—but these are interpreted narrowly by courts. When in doubt, provide as much notice as possible.
Source: Fisher Phillips |
