The coronavirus outbreak has led to significant disruption of the American economy, among other things forcing many employers to lay off large numbers of workers and prompting many others to contemplate taking such steps. Layoffs involving large numbers of workers can trigger a little-known federal employment law – the Worker Adjustment and Retraining Notification (WARN) Act – that requires the employer to provide 60 days of advance notice to impacted workers before a mass layoff occurs.
At the same time, the WARN Act recognizes that sometimes circumstances arise that can justify failure to provide the full 60 days’ notice, such as unforeseen business circumstances. Importantly, however, this exception doesn’t fully excuse compliance, and it comes with its own rules that must be followed. Moreover, besides the WARN Act, some states have their own layoff notification laws that impose additional requirements.
In light of the impact that the coronavirus is having on the U.S. economy, we thought it would be helpful to provide a refresher on the WARN Act and related state laws, with an emphasis on those exceptions that may be applicable to layoffs connected to the coronavirus outbreak.
Please note that this memorandum provides a general overview of the WARN Act and other layoff notification laws and is not intended to provide legal advice. Compliance with the particular requirements of layoff notification laws can be complicated, and employers are advised to confer with legal counsel if a situation requiring possible WARN Act notice arises.
Members of the Center for Workplace Compliance (CWC) can read more here.