What is the Worker Adjustment and Retraining Notification Act?
The Worker Adjustment and Retraining Notification Act (WARN Act) is a federal law that was enacted in 1988. This Act requires employers in North Carolina with over 100 employees to provide 60 days’ notice before conducting a mass layoff or closing a large plant or facility. The WARN Act applies to all employers covered under the National Labor Relations Act (NLRA). Under the WARN Act, employers must give notice to affected employees, the state dislocated worker unit, and the local government. The notice must include the expected date of the layoff or closing, the number of employees to be laid off or relocated, and the jobs affected. This enables employees to adjust and make arrangements for health care and other benefits before the layoffs or closures take effect. The WARN Act also provides that employees must be paid any wages, vacation pay, or severance pay due for the period of the required notice, even if they would normally not receive these benefits until after the layoff or closure. The purpose of the WARN Act is to provide protection to employees by giving them advance notice of layoffs or plant closings. It allows employees to seek other employment before their jobs are eliminated and provides them with resources to secure new employment. The WARN Act also helps stabilize local economies by providing applicable employers with incentives to remain in the area and continue operations.
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