Closing Your Location? WARN Before You Get Slammed with Federal and State Fines!
Is your business planning to conduct a layoff or plant closing? If so, you probably know that federal and local laws may require you to give prior notice to your employees. But did you also know that state law may impose stricter notice requirements and require severance payments. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide 60 days’ prior written notice before conducting a mass layoff or plant closing. Several states have enacted similar laws, known as “mini-WARN Acts.” State mini-WARN Acts generally expand the employer’s obligations compared to the federal WARN Act. State WARN Acts may offer workers stronger protection than the federal WARN Act, such as longer notice periods, higher damages for violations, or a lower threshold for a layoff to qualify as a mass layoff, compared to federal law.
State | Businesses Covered | Summary | Days to Warn | Noncompliance |
CA | Businesses w/ 75 employees within the preceding 12 months. | Employers must notify affected employees and the appropriate government parties when a termination, relocation, or mass layoff occurs. | 60 days | Employers may be liable to pay employees for back pay and benefits. An employer that fails to notify any of the government parties required to be notified may be subject to a civil penalty of up to $500 per day of the violation. |
DE | Businesses w/ at least 100 full-time employees or 100 employees who work in the aggregate at least 2,000 hours per week. | Employers must notify affected employees and their representatives, as well as the appropriate government parties, when a termination, relocation, or mass layoff occurs. | 60 days | Employers may be liable to pay employees for back pay and benefits. Employers may be liable for civil penalties equal to the greater of (i) $1,000 per day of violation or (ii) $100 per day per dislocated worker. |
HI | Businesses w/ 50 or more employees at any time in the preceding 12 months. | Employers must notify affected employees and the appropriate government parties when there has been a closing, partial closing, relocation, or divestiture. Additionally, employers may have to pay a dislocated worker allowance to affected employees. | 60 days | Employers may be liable to pay employees for back pay and benefits. Employers that fail to comply with the other requirements of the act may be liable to the affected employees for three months of wages, benefits, and other compensation. An employer who fails to provide the required notice may also be liable for civil penalties of up to $500 per day for the violation. |
IL | Businesses w/ 75 full-time employees or 75 employees who work in the aggregate at least 4,000 hours per week (excluding overtime). | Employers must notify affected employees and their representatives, as well as the appropriate government parties, when a mass layoff, plant closing, or relocation occurs. | 60 days | Employers may be liable to pay employees for back pay and benefits. Employers may be liable for civil penalties of up to $500 per day for the violation. |
IA | Businesses w/ 25 full-time employees. | Employers must notify affected employees and their representatives, as well as the appropriate government parties, when a mass layoff or business closing occurs. | 30 days | Employers may be liable for civil penalties of up to $100 per day of the violation. |
ME | Businesses w/100 employees in the preceding 12 months. | Employers must notify affected employees and the appropriate government parties when a relocation or mass layoff occurs. Employers must pay eligible employees severance pay equal to one week’s pay per year of employment. | 90 days | Employers that fail to provide the required notice may be liable for a civil penalty of up to $500. |
MD | Businesses w/ 50 full-time employees and have been doing business in the state for at least one year. | Employers must notify affected employees and their representatives, as well as the appropriate government parties, when a relocation or closing occurs. | 60 days | Employers may be liable for civil penalties of up to $10,000 per day, up to $600,000. |
NH | Businesses w/ 100 full-time employees or 100 total employees who work at least 3,000 hours per week (excluding overtime). | Employers must notify affected employees and their representatives, as well as the appropriate government parties, when a mass layoff or plant closing occurs. | 60 days | Employers may be liable to pay employees for back pay and benefits. Employers may be liable for a civil penalty of up to $2,500 plus additional civil penalties of up to $100 per day of noncompliance. |
NJ | Businesses in operation for longer than three years with 100 or more employees. | Employers must notify affected employees and their collective bargaining representatives, as well as the appropriate government parties, when a closing, relocation, or mass layoff occurs. Employers must pay all affected employees the greater of one week of severance per year of employment or severance pay to which they are entitled under a collective bargaining agreement or other employer policy. | 90 days | Employers that fail to provide notice are liable for four additional weeks of severance to each affected employee. |
NY | Businesses w/ 50 full-time employees (including remote workers based at the employment site), or 50 employees who work in the aggregate at least 2,000 hours per week (including overtime). | If a mass layoff, plant closing, reduction in hours, or relocation occurs, employers must notify affected employees and their representatives, as well as the appropriate government parties. | 90 days | Employers may be liable to pay employees for back pay and benefits. Employers may be liable for civil penalties of up to $500 per day of violation, up to the maximum penalties that can be assessed under the federal WARN Act. |
TN | Businesses w/ 50 but not more than 99 full-time employees at a workplace located in Tennessee that is not exempt from the requirements of the Tennessee Employment Security Law. | If a reduction in operations or a relocation occurs, employers must notify affected employees and the appropriate government parties. | 60 days | N/A. |
VT | Businesses w/ 50 full-time employees, 50 part-time employees who work at least 1,040 hours per employee per year, or a combination of the two previous options. | If a business closing or mass layoff occurs, employers must notify affected employees and the appropriate government parties. | 30 days | Employers may be liable for up to 10 days’ severance and up to one month of medical and dental continuation. Employers may be liable for administrative penalties equal to $500 per day of noncompliance. |
WI | Businesses w/ 50 employees in the state. | If a business closing or mass layoff occurs, employers must notify affected employees and the appropriate government parties. | 60 days | Employers may be liable to pay employees for back pay and benefits for the period of noncompliance. Employers may be liable for a surcharge of up to $500 per day of noncompliance. |
NOTE: Each state defines the triggering event for its mini-Warn law differently. The triggering event can be a Mass Layoff, Closing, Business Closing, Plant Closing, Reduction in Workforce, Relocation, Divestiture, or other similar events. Additionally, the appropriate government parties change from state to state. PLEASE CALL WEISS LLP FOR MORE INFORMATION.