The WARN Act: What Employers Need to Know About Advance Notice Requirements
The WARN Act is a federal law that requires employers to provide advance notice and planning mechanisms to their workforce and communities in the event of a qualified “plant closing” or “mass layoff.” Employers with 100 or more full-time employees must provide written notice at least 60 calendar days in advance of covered plant closings and mass layoffs. Certain states have mini-WARN acts. The law includes exceptions such as "unforeseen business circumstances." Employers must also consider whether remote or virtual workers are entitled to WARN notice. Consult with counsel if contemplating a layoff.
Exceptions to the 60-Day Notification Requirement
The WARN Act is a federal law that requires employers to provide advance notice of "plant closing" or "mass layoff" to their workforce and communities. However, there are exceptions to the 60-day notification requirement, such as "unforeseen business circumstances" caused by an unanticipated economic downturn that was not reasonably foreseeable. Employers may have relied on this exception during the initial phase of the COVID-19 pandemic. The applicability of this exception is determined on a case-by-case basis.
The Impact of Remote Work on WARN Act Compliance
Employers must evaluate if remote or virtual workers qualify for WARN notice, as courts are still determining this due to the increase in remote work. It's important for businesses to seek legal advice regarding the WARN Act and related employment laws before implementing layoffs.
