What is a key requirement of the Worker Adjustment and Retraining Notification (WARN) Act?

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide notice to employees and their representatives before certain types of workforce reductions. The key requirement of the WARN Act is that employers must provide at least 60 days' advance notice of a plant closing or mass layoff. This notice is intended to give employees and their families time to prepare for the economic impact of job loss and to seek other employment opportunities or retraining services if necessary.

Under this law, a mass layoff generally refers to a reduction in force that affects 50 or more employees at a single site of employment, while a plant closing pertains to the permanent or temporary shutdown of a facility. The rationale behind the WARN Act is to protect workers and their families from the sudden loss of income and to allow them the opportunity to seek alternative employment or to adjust their plans accordingly. This notice requirement is fundamental to ensuring that employees have adequate time to transition and consider their options in the face of significant employment changes.