WARN Act
WARN Act is the Worker Adjustment and Retraining Notification Act of 1988, which requires larger employers to give 60 days written notice before plant closings and mass layoffs.
What it requires
Employers with 100 or more full-time employees must give 60 days notice to affected workers, unions and state and local officials before a closing that affects 50 or more workers at one site, or a mass layoff of 500 workers or of 50 to 499 workers if they are at least a third of the site. Employers that fail to notify owe back pay and benefits for up to 60 days, and up to 500 dollars a day to local government. Many states have stricter mini-WARN laws.
Why it matters
WARN timing matters whenever a 3PL loses a large client or consolidates buildings. A contract that ends with 45 days notice can still force the 3PL to give workers 60 days of notice or pay, so client termination clauses and site exit plans should allow for it. For example, a 3PL closing a 200-person New Jersey building after a retailer pulls its volume must meet both the federal rule and New Jersey's stricter law, which requires 90 days notice and mandatory severance.
Related laws
Sources
- US DOL: Worker Adjustment and Retraining Notification Act dol.gov
- 29 U.S.C. Chapter 23 (Cornell LII) law.cornell.edu
Not legal advice.