Mass Layoff

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Congress passed the Worker Adjustment and Retraining Notification Act in 1988.

The WARN Act 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 Example:

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. (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. (Snider v. Commercial Financial Services)

[Last updated in July of 2020 by the Wex Definitions Team]