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CRS – Worker Adjustment and Retraining Notification Act

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Worker Adjustment and Retraining Notification (WARN) Act, Benjamin Collins, Analyst in Labor Policy. September 4, 2012

  • “Enacted by the 100th Congress, the Worker Adjustment and Retraining Notification (WARN) Act requires qualified employers that intend to carry out plant closings or mass layoffs to provide 60 days’ notice to affected employees, states, and localities. The purpose of the notice to workers is to allow them to seek alternative employment, arrange for retraining, and otherwise adjust to employment loss. The purpose of notifying states and localities is to allow them to promptly provide services to the dislocated workers and otherwise prepare for changes in the local labor market. The WARN Act applies to employers with at least 100 or more full-time employees or equivalents. Federal, state, and local government employers are not subject to the act. Broadly speaking, there are three types of events that require notification under the WARN Act. Each of these events is limited to a single site of employment; employment losses by a single employer across multiple sites are not aggregated. Events that trigger the requirements of the WARN Act are
    • a plant closing resulting in employment losses of at least 50 employees;
    • a mass layoff of at least 50 employees where the employment loss consists of at
      least 33% of employment at the site; or

    • a mass layoff with an employment loss of 500 or more at a single site of employment, regardless of its proportion of total employment at the site or if the employment loss is part of a plant closing.”
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