A large layoff by a company can affect the economy of an entire city or even region. At its core, however, it affects the lives of dozens if not hundreds of people and the families who rely on their paycheck.
That’s why the federal government enacted the Worker Adjustment and Retraining Notification (WARN) Act. Some states (although not Idaho) have their own WARN Acts to help ensure that employees have sufficient notice prior to a layoff. The WARN Act prevents most employers from just shutting their doors with no notice, leaving employees without a job or a paycheck
What notification process is required?
In most cases, employers must provide workers with written notice of impending layoff or site closure at least 60 calendar days before it occurs. It must include information such as the official date of the employee’s separation from the company and whether the layoff is temporary (6 months or less) or permanent, a copy of the law and contact information if they have questions.
Who is (and isn’t) protected by the federal WARN Act?
The WARN Act must be followed by any private for-profit business, non-profit organization and “quasi-public” entity with at least 100 full-time employees. To be eligible for these protections, a person must have been employed for at least six months and work at least 20 hours per week.
The law applies to:
- Individual plant or facility closings where at least 50 full-time employees are losing their jobs and the site is closing
- Any “mass layoff” that impacts 50 to 499 full-time workers at one site (even if it’s remaining open) if the number of layoffs comprise at least a third of the site’s full-time workforce.
- Any mass layoff at a single site where at least 500 full-time employees are being laid off
Note that employees are protected whether they are hourly or salaried, as long as they meet the other requirements. The law doesn’t apply to government employees, independent contractors, other temporary workers or those on strike.
Some businesses provide severance packages to employees who are laid off. This can help ease their financial burden while they look for another job. Generally, however, these aren’t required unless they’re part of an employee agreement.
The WARN Act at least provides workers with some notice of impending job loss so that they have time to begin looking for another job and making other financial preparations, if possible. If you don’t believe your employer complied with the WARN Act prior to a layoff, it’s wise to learn more about it and perhaps seek legal guidance.
