In general, a mass layoff refers to a situation where a significant number of employees are terminated or laid off by an employer within a defined timeframe. However, the legal definition of a mass layoff can vary depending on the jurisdiction and the specific laws in place.
In the United States, the term "mass layoff" is primarily associated with the Worker Adjustment and Retraining Notification (WARN) Act, a federal law passed by Congress in 1988 that requires certain employers to provide advance notice to employees and local government authorities in the event of a plant closure or mass layoff.
According to the WARN Act, the term "mass layoff" means a reduction in force which is:
- “Not the result of a plant closing; and
- Results in an employment loss at the single site of employment during any 30-day period for:
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- at least 33 percent of the employees (excluding any part-time employees); and
- at least 50 employees (excluding any part-time employees); or
- at least 500 employees (excluding any part-time employees)”
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The WARN Act also requires employers with one hundred or more full-time employees to provide sixty days’ advance notice to workers. Sixty days’ notice is also required for any layoff that involves five hundred or more workers, or that affects fifty or more workers who represent at least one-third or more of the workforce.
Adequate Notice
Adequate notice under WARN Act can be provided by combination of employer's original letter announcing seasonal layoff as of certain date and subsequent letter clarifying possible employment opportunities for laid–off workers with another company see Kalwaytis v. Preferred Meal Systems, Inc.
A written notice employer provided to its employees prior to mass layoff meets statutory and regulatory requirements of WARN Act even if employer notice all employees rather than just those who were affected by layoff, see; Snider v. Commercial Financial Services.
See the database of WARN notices for New York State at https://dol.ny.gov/warn-notices
[Last updated in July of 2023 by the Wex Definitions Team]