What Does Worker Adjustment and Retraining Notification Act (WARN) Mean?
A U.S. labor statute enacted on August 4, 1988, the Worker Adjustment and Retraining Notification Act (WARN) requires companies employing 100 employees or more to provide a 60-calendar-day advance notice of any site closings or mass layoffs. Employees entitled to receive notices under this act include managers and supervisors as well as hourly paid and salaried workers. Notices must also be provided to the employees' representative or labor union, the local chief government official, such as the mayor, and the government unit handling dislocated workers.
Insuranceopedia Explains Worker Adjustment and Retraining Notification Act (WARN)
The purpose of advance notification is to allow employees and their families enough time to adjust to upcoming unemployment and loss of income, secure an alternative job while in transition, and if needed, obtain additional skill training and retraining to be competitive in the job market. Moreover, it allows the appropriate agencies to provide information dislocated worker services and unemployment insurance. Lastly, an employer who violates this act is liable to pay each employee the equivalent of back wages and other benefits during the period of violation, subject to a maximum period of 60 days.