What is the Worker Adjustment and Retraining Notification Act (WARN)?
The Worker Adjustment and Retraining Notification Act (WARN) is a federal law that requires employers in certain industries to provide their employees with advance notice of a plant closing or mass layoff. The WARN Act requires employers with 100 or more workers to give affected employees 60 days’ notice of a pending plant closing or mass layoff. WARN also gives employees the right to request early severance pay and/or benefits when their positions are eliminated. In Maryland, WARN extends the minimum notice period to 90 days if the number of affected jobs is more than 25 and the number of affected employees is more than 33 percent of the employer’s workforce. Additionally, if the affected workers are represented by a labor union, the employer must provide 60 days’ notice to the union in addition to the individual employees. For certain types of businesses, such as those affected by a natural disaster, WARN does not apply. Also, the law does not apply to businesses with fewer than 100 workers. In the event of a plant closing or mass layoff, WARN requires employers to provide affected workers with full wages and benefits for the period of notice they are required to provide. If the employer fails to comply with the WARN Act, employees may be eligible to obtain back pay and medical benefits for up to two months’ wages.
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