Dallas Employment Lawyer Blog
Dallas Employment Trail Lawyer Harjeen Zibari
Unfortunately, mass layoffs are beginning to look like a more and more common thing. However, if a employer chooses to let go of much of its workforce at once, it must follow the WARN Act. This a law designed to protect workers by making sure employers give you a heads-up before large layoffs or company shutdowns. If you’ve never heard of it, you’re not alone—but knowing your rights under this law could make a huge difference if your job is ever at risk.
Let’s break down what the WARN Act is, what it covers, and what it means for you.
What Does “WARN” Stand For?
The WARN Act stands for the Worker Adjustment and Retraining Notification Act. It’s a federal law in the United States that went into effect in 1989. Its main goal is simple: to give workers and their families time to prepare before a major job loss happens.
In other words, if your company is planning a big layoff or is shutting down a plant or office, the law says they usually have to give you at least 60 days’ notice before it happens.
Why Does the WARN Act Matter?
Imagine this: you show up to work on a Monday morning and your boss tells you the business is closing—effective immediately. No paycheck coming, no time to look for a new job, and no idea how to pay your rent next month. This leaves workers in a really terrifying bind.
The WARN Act is designed to prevent that kind of surprise. It gives workers time to:
- Search for a new job
- Get training or reskilling
- Apply for unemployment benefits
- Adjust their finances and make plans
In short, it adds a little predictability in what could otherwise be a chaotic situation.
Who Does the WARN Act Apply To?
The WARN Act doesn’t apply to every employer. It only covers businesses that:
- Have 100 or more full-time employees, or
- Have 100 or more employees (including part-timers) who work a combined 4,000 hours or more per week (excluding overtime)
If your company is small—say, fewer than 100 full-time workers—the WARN Act likely doesn’t apply.
When Does the WARN Act Require Notice?
There are two main situations where employers must give 60 days’ advance written notice:
- Plant Closing: This is when a company shuts down a site of employment (like a factory, office, or warehouse), and that shutdown results in 50 or more job losses during a 30-day period.
- Mass Layoff: This happens when there’s no plant closing, but a large number of employees are laid off at once. This means either:
- 500 or more employees are laid off, or
- 50–499 employees are laid off and they make up at least 33% of the workforce at that location
Keep in mind, the job losses must be expected to last at least six months or be permanent.
How Does the Notice Work?
Employers must give written notice to:
- Affected employees (or their union, if applicable)
- The state’s applicable agency (for Texas, it would be the Texas Workforce Commission)
- The local government where the layoffs will happen
This notice must be clear, specific, and sent 60 calendar days before the layoffs or shutdown. It should include information like:
- The expected date of the layoff or closure
- Whether the layoff is permanent or temporary
- Any bumping rights (the right to take another job within the company—this usually applies to federal employees or may be a part of a Collective Bargaining Agreement for unionized workers)
Are There Any Exceptions?
Yes. There are a few situations where companies may be allowed to give less than 60 days’ notice:
- Unforeseeable Business Circumstances: If something unexpected happens—like a sudden loss of a major client or a financial crisis—the company may not have time to plan ahead. Many employers will try to apply this exception, as it is the broadest.
- Natural Disasters: Events like hurricanes, earthquakes, or floods can force immediate closures.
- Faltering Company: If a company is actively trying to secure new funding or business to stay afloat, and giving advance notice would ruin the chances of survival, it may not have to give full notice.
If a company is in violation of the WARN Act, it will often attempt to argue that it is under one of these exceptions.
What Happens If an Employer Breaks the Rules?
If an employer covered by the WARN Act fails to give proper notice, they can be held legally and financially accountable. Employees may be entitled to:
- Back pay for each day of the violation (up to 60 days)
- Benefits they would have received (like health insurance coverage)
- Legal fees and court costs, if they sue and win
The company could also face fines from the government (the Department of Labor) for each day they failed to provide proper notice.
Does Texas Have its Own Version of the WARN Act?
Some states, like California and New York, have their own versions of the WARN Act that give employees additional rights that the federal law doesn’t. Unfortunately, Texas does not have such a law.
I’ve Been Laid Off, But My Company Didn’t Violate the WARN Act. Does This Mean I Don’t Have a Claim?
You might not have a claim under the WARN Act, but if you believe that you were selected to be let go in a mass layoff because of your race, national origin, gender, sexual orientation, age, disability, use of federal leave, in retaliation for engaging in legally protected activity, or any other legally protected reason, you may still have a claim. It’s worth talking to an employment lawyer to see what oyur options are.
Final Thoughts
No one likes to think about losing a job, but it’s always good to know your rights. The WARN Act is there to protect workers from being blindsided by mass layoffs or closures. If your company is large and planning major changes, you may have the legal right to advance notice—and compensation if they fail to provide it.
Do you think you’ve been subject to a WARN Act violation? Or, have you been laid off and think you have a legal case involving discrimination or harassment? Contact me in Dallas or one of my talented colleagues in Houston or Austin today.