The federal Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to provide advance notice of significant layoffs or plant closings. Specifically, the WARN Act applies to businesses with 100 or more full-time employees (not counting workers who have been with the company less than six months or who work fewer than 20 hours per week).
If your business is covered by the WARN Act, you must provide at least 60 calendar days’ written notice to affected employees (or their representatives), state dislocated worker units, and local government officials prior to a mass layoff or plant closure. Failing to do so can expose your businesses to liability, including back pay and civil penalties. This requirement of providing advance notice gives employees and their families time to prepare for the loss of employment, search for new jobs, and, if needed, pursue retraining opportunities to remain competitive in the workforce.
The WARN Act rules only apply in limited circumstance: a plant closing that results in the loss of 50 or more jobs at a single site, or a mass layoff involving 500 or more employees (or 50–499 employees if they make up at least 33 percent of the workforce at a single site).
It is also important to note that some states may have their own “mini-WARN” laws that expand upon federal requirements. For example, California’s WARN Act applies to employers with as few as 75 employees and includes different procedural and timing requirements. Fortunately, Utah does not have its own "mini-WARN" law.
If your company is considering workforce reductions or restructuring, it is essential to understand your obligations under both federal and state law. Our law firm regularly advise business owners on compliance with the WARN Act and we can help you navigate the process to minimize legal risk. Contact our office if you are planning layoffs or closures or if we can support you on any other HR legal matters.
