What is the WARN act?

The WARN act is a federal law, applicable in Michigan, that stands for "Worker Adjustment and Retraining Notification". It requires that employers with more than 100 employees provide at least 60 days advance notice of a layoff, plant closing, or mass layoff. WARN applies to employers in the private sector, and to some public sector employers. Under the WARN act, employers must provide notice to the following parties: affected workers, their representatives (such as a union), the state dislocated worker unit, and the local chief elected official. WARN also requires employers to provide laid-off workers with severance pay and other benefits or notification of alternative jobs. Employers must comply with the WARN act or they can be fined up to $500 a day and be liable for back pay and benefits to laid-off employees. Employees affected by a layoff or plant closing may also be eligible for certain tax credits. In Michigan, employers must also comply with the Michigan Worker Adjustment and Retraining Notification Act, which requires that employers with 75 or more employees provide at least 90 days notice of a layoff or plant closing. The Michigan WARN Act is applicable to all employers in the state, regardless of size.

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What is the WARN act?

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