Worker Adjustment and Retraining Notification Act of 1988

United States labor law

The Worker Adjustment and Retraining Notification Act of 1988 (the "WARN Act") is a U. S. labor law that protects employees, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of planned closings and mass layoffs of employees. In 2001, there were about 2,000 mass layoffs and plant closures that were subject to WARN advance notice requirements and that affected about 660,000 employees. Employees entitled to notice under the WARN Act include managers and supervisors, hourly wage, and salaried workers. The WARN Act requires that notice also be given to employees' representatives (e. g., a labor union), the local chief elected official (e. g. the mayor), and the state dislocated worker unit. The advance notice is intended to give workers and their families transition time to adjust to the prospective loss of employment, to seek and to obtain other employment, and if necessary, to enter skill training or retraining programs that would allow these workers to successfully compete in the job market.

An employer who violates WARN provisions is liable to each employee for an amount equal to back pay and benefits for the period of the violation, up to 60 days. The liability may be reduced by the period of any notice that was given and any voluntary payments that the employer made to the employee, sometimes referred to as "pay in lieu of notice." U. S. district courts enforce WARN requirements. Workers, representatives of employees, and units of local government may bring individual or class action suits. Courts may allow reasonable attorney's fees as part of any final judgment. The U. S. Department of Labor is responsible to educate and inform employers and employees about WARN, and to provide assistance in understanding the regulations, but is not responsible for enforcing WARN.

The WARN Act was passed by a Democratic controlled Congress with sufficient Republican support and abstention to achieve the 66% super majority required to overcome President Ronald Reagan's refusal to sign the Bill. The WARN Act became law in August 1988 and took effect in 1989. In light of sequestration set to take effect after January 2, 2013, the Obama Administration issued guidance saying "it is neither necessary nor appropriate for Federal contractors to provide WARN Act notice to employees 60 days in advance of the potential sequestration because of uncertainty about whether sequestration will occur."

The U. S. Government Accountability Office (GAO) reviewed the WARN Act in 1993 and 2003. The GAO found that certain definitions and requirements of WARN are difficult to apply when employers and employees assess the applicability of WARN to their circumstances. The GAO recommended amending the WARN Act to simplify the calculation of thresholds, clarify the definition of employer, clarify how damages are calculated, and establish a uniform statute of limitations.