Layoffs & Transitions

The WARN Act: what it is and whether it applies to you

If you were part of a mass layoff and didn't get any advance notice, you may be entitled to pay you don't know you can claim.

Federal WARN applies to employers with 100 or more employees. A mass layoff triggers the notice requirement when, at a single site within any 30-day period, at least 50 employees lose their jobs and that is at least 33% of the people at that site. Both have to be true.

There is a second trigger with no percentage test: 500 or more employees at one site. A shutdown is its own trigger, at 50 or more. Where WARN applies, it requires 60 days of written notice.

The 33% condition is why plenty of large layoffs never generate a filing. Two hundred people cut from a five-thousand-person site clears the 50 and misses the percentage, so nothing gets filed.

If the company didn't give 60 days notice, they owe you up to 60 days of back pay and benefits. That's not automatic. You have to pursue it. But it's real money for a real obligation.

What most people don't know

The WARN Act has exceptions, and companies know how to use them. The "faltering company" exception applies when a company was actively seeking capital and reasonably believed advance notice would ruin the deal. The "unforeseen business circumstances" exception covers sudden, dramatic changes the company couldn't have predicted.

The act has a private right of action, which means you can file a civil lawsuit to collect what you're owed. You don't need the government to pursue it for you.

Many states have their own WARN laws that are stricter than the federal version. California's WARN Act covers employers with 75 or more employees and has a lower threshold for what counts as a mass layoff. New York, New Jersey, and Illinois have similar state-level protections.

What you can do

If you were part of a mass layoff with little or no notice, check whether your employer was covered by WARN and whether the layoff met the threshold. The DOL has guidance at dol.gov/warn. If you think you have a claim, an employment attorney can assess it quickly.

Quick reference

DOL resource

dol.gov/agencies/eta/layoffs/warn

State laws

California, New York, New Jersey, Illinois have broader protections

Claims

File with your state's labor agency or pursue a private civil claim with an employment attorney