Employees can face severe psychological and financial harm when their employer unexpectedly terminates them or lays them off. The Worker Adjustment and Retraining Notification Act (WARN Act) is a legislative attempt to mitigate the widespread negative consequences of unexpected termination and dislocation. The WARN Act requires specific employers to provide their employees with notice before a mass layoff or plant closing. Texas employers that violate WARN provisions may be liable to any affected employee.
The WARN Act typically applies to public, quasi-public, non-profit, and private for-profit employers that employ at least 100 full-time workers. Covered employees include supervisory, managerial, salaried, and hourly workers. However, business partners, striking workers, and temporary facility employees are not covered and are not entitled to notice.
The Act requires employers to give notice when (1) a plant is closing, (2) there is a mass layoff, or (3) over 500 employees are laid off at a single location. The Act also applies in situations in which an employee does not lose their job, but the employee experiences a work reduction of at least 50%. Generally, the Act requires employers to provide their employees with written notice at least 60 days before the closing. Employers cannot rely on verbal announcements, press releases, or notices included with a paycheck.