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The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide 60 days’ prior written notice before conducting a mass layoff or plant closing. Several states, including New York, have enacted similar laws, generally referred to as “mini-WARN Acts.” State mini-WARN Acts generally expand upon or add to the employer obligations under the federal WARN Act. However, the laws vary significantly, so employers should carefully review their obligations on a state-by-state basis.
Mini-WARN Acts typically fall into one of the following broad categories:
- Laws that expand notice obligations to more employers or in more circumstances, including California, Delaware, Illinois, Iowa, Maryland, New Hampshire, New York, Tennessee, Vermont and Wisconsin; or
- Laws that expand notice requirements and impose severance or similar obligations, including Hawaii, Maine, and New Jersey.
There are also a handful of state laws, including in Connecticut and Massachusetts, which apply in similar circumstances but are unique in their application or requirements.
This Compliance Overview provides a high-level comparison and summary of the federal WARN Act and the New York Min-WARN Act.
Key Definitions
- “Employment loss” means either (i) a termination of employment other than a discharge for cause, voluntary departure, or retirement, (ii) a layoff exceeding six months, or (iii) a reduction in hours of work of more than 50% during each month of any six-month period.
- “Full-time employee” means an employee who is employed for an average of at least 20 hours per week and has been employed for at least six of the preceding 12 months.
Overview of the Federal WARN Act
In general, the federal WARN Act requires covered employers to provide 60 days’ notice to employees, their representatives, and certain government parties in the event of a mass layoff or plant closing.
| COVERED ENTITIES | |
| Covered Employer | Businesses employing at least:
|
| TRIGGERING EVENTS | |
| Mass Layoff | Reduction in force that results in the employment loss at a single employment site during any 30-day period of at least:
|
| Plant Closing | Permanent or temporary shutdown of a single employment site, or one or more facilities or operating units within the site, that results during any 30-day period in the employment loss for at least 50 full-time employees |
| NOTICE REQUIREMENTS | |
| Amount | 60 days prior to the triggering event |
| Recipients |
|
| PENALTIES | |
| Damages | Employers may be liable to pay employees for back pay and benefits for the smaller of (i) the period of the violation up to a maximum of 60 days or (ii) half the number of days the employee was employed |
| Civil Penalties | An employer that fails to notify any of the government parties required to be notified may be subject to a civil penalty of up to $500 per day of the violation |
Overview of State Mini-WARN Acts
The state mini-WARN Acts generally provide greater protections to employees in the event of a mass layoff, plant closing, or similar event than those provided under the federal WARN Act. Specifically, these state laws may:
- Have more expansive notice requirements that:
- Require more advanced notice;
- Apply to a greater number of employers;
- Apply to a greater number of mass layoffs or plant closings; and
- Apply to additional or different triggering events; or
- Require severance or other payments to affected employees.
New York Mini-WARN Act
At a Glance: New York’s mini-WARN Act requires covered employers to provide 90 days’ notice to affected employees, their representatives, and certain government parties in the event of a mass layoff, plant closing, covered reduction in hours, or relocation.
| COVERED ENTITIES | |
| Covered Employers | Businesses employing at least:
|
| TRIGGERING EVENTS | |
| Mass Layoff | Reduction in force that results in an employment loss at a single site of employment during any 30-day period of at least:
|
| Plant Closing | Permanent or temporary shutdown of a single site of employment or one or more facilities or operating units within a single site of employment resulting in an employment loss during any 30-day period for at least 25 full-time employees |
| Reduction in Hours | Reduction by more than 50% in hours of work during each month in any consecutive six-month period for at least:
|
| Relocation | Removal of all or substantially all operations of an employer to at least 50 miles away from the original operation site where at least 25 full-time employees suffer an employment loss |
| NOTICE REQUIREMENTS | |
| Amount | 90 days prior to the triggering event |
| Recipients |
|
| PENALTIES | |
| Damages | Employers may be liable to pay employees for back pay and benefits for the smaller of (i) the period of the violation up to a maximum of 60 days or (ii) half the number of days the employee was employed |
| Civil Penalties | Employers may be liable for civil penalties of up to $500 per day of the violation up to the maximum penalties that can be assessed under the federal WARN Act |
Employer Takeaways
Employers considering a plant closing, mass layoff, relocation, or similar action should carefully review the mini-WARN Acts in the states where they have employees. Both the federal WARN Act and the state mini-WARN Acts may carry substantial penalties for noncompliance, so employers must understand their obligations. These laws can be complicated, so employers may need to engage local counsel in navigating the laws and their application to an employer’s particular circumstances.
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