An overview of the Worker Adjustment and Retraining Notification Act -- WARN
29 USC º2101 et seq.; 20 CFR 639
Who is covered by WARN?
In general, employers are covered by Worker Adjustment and Retraining
Notification Act (WARN or the Act) if they have 100 or more employees, not
counting employees who have worked less than 6 months in the last 12 months
and not counting employees who work an average of less than 20 hours a week.
Regular federal, state and local government entities which provide public
services are not covered. Employees entitled to notice under WARN include
hourly and salaried workers, as well as managerial and supervisory
employees.
What are the Basic Provisions of WARN?
WARN provides protection to workers, their families and communities by
requiring employers to provide notification 60 calendar days in advance of
plant closings and mass layoffs. Advance notice provides workers and their
families some transition time to adjust to the prospective loss of
employment, to seek and obtain alternative jobs and, if necessary, to enter
skill training or retraining that will allow these workers to successfully
compete in the job market. WARN also provides for notice to State dislocated
worker units so that dislocated worker assistance can be promptly provided.
What type of company is covered by WARN?
A covered plant closing occurs when a facility or operating unit is shutdown
for more than 6 months, or when 50 or more employees lose their jobs during
any 30-day period at the single site of employment. A covered mass layoff
occurs when a layoff of 6 months or longer affects 500 or more workers, or 33
percent or more of the employer's workforce when the layoffs affect between
50 and 499 workers. The number of affected workers is the total number laid
off during a 30-day, or in some cases a 90-day period.
When does WARN not apply?
WARN does not apply to the closing of temporary facilities, or the completion
of an activity when the workers were hired only for the duration of that
activity. WARN also provides for less than 60 days notice when the layoffs
were the result of the closing of a faltering company, unforeseeable business
circumstances, or a natural disaster.
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