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What is the WARN Act?

The WARN Act is a law that protects workers from the impacts of unexpected loss of employment by requiring employers to give notice to employees. The WARN Act defines loss of employment as employment termination, a layoff exceeding six months or the reduction of working hours by 50% in six months.



The WARN Act requires employers to give employees 60-day notice when:

• Closing a facility will lead to loss of employment for at least 50 employees. However, this notice does not cover employees who are employed for 20 hours a week or less, or employees who have worked less than six months for a company.
• At least 500 employees who work on an employer’s site for 30 days will be laid off. The employees who will be laid off should comprise at least 33% of actively working employees at the employer’s site. The act does not cover employees who have worked for less than six months or those who work less than 20 hours a week.

The act also requires that employers notify employees affected by the sale of a business or one of its parts. In this case, the employer must provide at least 60 days’ notice. Other expectations include:

• The seller must provide notice before the sale date and time. The buyer must provide employees with a notice of a plant closure or mass layoff after the sale date and time.
• The employees of the seller will immediately become the employees of the buyer after the sale.
• The notice should also inform any affected areas of the sale date and time.
• If the sale of the business will not result in plant closure or mass layoff, employers are not required to give notice.