Reductions in Force: Federal Worker Adjustment and Retraining Notification Act (Federal WARN Act)

Reductions in force occur for a variety of reasons, sometimes due to internal factors and other times resulting from external influences. No matter the cause, layoffs and closures are difficult for any business. Among other factors to consider, employers must review their Worker Adjustment and Retraining Notification (WARN) Act obligations under both federal and state laws and ensure any reductions comply with these obligations, if triggered. This week’s legal update provides a general overview regarding the federal WARN Act. A future update will summarize California’s “mini” WARN Act. Employers with California operations must understand their obligations under both laws.