Worker Adjustment And Retraining Notification Act

What Does Worker Adjustment And Retraining Notification Act Mean?

The Worker Adjustment and Retraining Notification Act (WARN), a U.S. labor statute enacted on August 4, 1988, mandates that companies with 100 or more employees provide a 60-calendar-day advance notice before any site closures or mass layoffs. Employees entitled to these notices include managers, supervisors, hourly workers, and salaried employees. In addition to notifying the affected employees, employers must also inform the employees’ representative or labor union, the local chief government official (such as the mayor), and the government agency responsible for assisting dislocated workers.

Insuranceopedia Explains Worker Adjustment And Retraining Notification Act

The purpose of advance notification is to give employees and their families sufficient time to prepare for impending unemployment and loss of income, secure alternative employment during the transition, and, if necessary, pursue additional skill training or retraining to remain competitive in the job market. Additionally, it enables relevant agencies to offer information on dislocated worker services and unemployment insurance. Employers who violate this act are liable to pay each affected employee the equivalent of back wages and other benefits for the duration of the violation, up to a maximum of 60 days.