The “Worker Adjustment and Retraining Notification Act” (WARN) is a law that requires employers to provide employees experiencing employment loss with a 60-day notice prior to a layoff, although some exceptions apply. The WARN protects workers, their families, and communities from the impact of mass layoffs.
Colorado Department of Labor & Employment
WARN, a federal law enacted in 1988, is designed to give advanced notice of layoffs to workers to help individuals and communities prepare for layoff events.
Which businesses are subject to WARN?
Employers with more than 100 full-time employees (there are exceptions) who are planning to conduct mass layoffs, close location(s), or sale of a business resulting in layoffs.
A mass layoff is defined as laying off or reducing employee hours by more than 50 percent of at least 50 employees (some exceptions apply).
All layoff events in a six-month period apply, meaning the act consider these layoffs part of one overall layoff event…just in stages.
The penalty for not providing WARN notice is $500 per day of violation.
Once you’ve provided a 60-day notice, your employees know they should be looking for other employment, will receive onsite information about employment and retraining services from the state’s rapid response dislocated worker unit, and they may take other positions before the notice period ends. If they are able to find other employment before the notice period ends, this scenario is ideal. It allows your employee to maintain their livelihood, and your company will reduce the number of unemployment claims.
If your business may meet the criteria for a WARN notice, it’s best to contact your state agency and verify to avoid penalties.
Resources
- Colorado Department of Labor and Employment. Learn about WARN in Colorado, view WARN filings, and submit a filing.
- Federal WARN Act Compliance Assistance.
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