As companies adapt to volatile economic conditions, it is a good time to review the requirements of the Worker Adjustment and Retraining Notification Act, 29 USC §§2101 to 2109 (WARN Act), and similar state laws that place notice requirements on employers prior to implementing a plant closing or mass layoff. This month’s column provides an overview of WARN and discusses developments regarding WARN liability as a single employer, offsets of WARN notice pay from voluntary severance pay and aggregation rules for calculating the number of layoffs necessary to trigger WARN notice.

WARN

WARN requires covered employers to provide 60 calendar days advance notice of plant closings and mass layoffs to affected employees. In general, employers are covered by WARN if they have 100 or more employees, exclusive of employees who have worked less than six of the last 12 months and employees who work an average of less than 20 hours a week. For plant closings, a covered employer must give written notice if an employment site (or one or more facilities or operating units within an employment site) will be shut down, and the shutdown will result in an employment loss for 50 or more employees during any 30-day period.

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