What is the Worker Adjustment and Retraining Notification Act (WARN)?
The Worker Adjustment and Retraining Notification Act (WARN) is a law in North Carolina that requires employers to provide a sixty-day notice to affected employees and local government officials in the event of a plant closure or mass layoff. This is in order to give these affected individuals time to make necessary arrangements before they lose their jobs. WARN applies to employers with a minimum of 100 employees and covers closing or reducing operations that affects fifty or more full-time employees at a single site. Under WARN, employers must also provide reinstatement rights to employees they laid off, pay for accrued vacation time, and provide health insurance coverage for the sixty-day period following the layoff. Employers who fail to provide proper WARN notice may be liable to the affected employees in the form of back pay and benefits. In addition, employers may face civil penalties in the form of fines and compensation for the time they failed to provide warning. WARN is intended to help minimize the financial impacts of job loss on employees. By providing workers with advance notice of an impending job loss, they can begin to make necessary arrangements, such as filing for unemployment benefits, seeking other employment opportunities, and making financial plans.
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