Worker Adjustment And Retraining Notification Act – WARN

AAA

DEFINITION of 'Worker Adjustment And Retraining Notification Act – WARN'

A United States labor law that offers protection to workers, workers' families and communities by requiring certain employers to give a 60-day advance notice of any plant closings or mass layoffs. The Worker Adjustment and Retraining Notification Act covers private, for-profit employers, and private, nonprofit employers with 100 or more employees. Employees who have worked fewer than six months in the previous 12 months, and employees who work less than 20 hours per week on average are not included in the employee count.


INVESTOPEDIA EXPLAINS 'Worker Adjustment And Retraining Notification Act – WARN'

Managers, supervisors, salaried and hourly wage workers are entitled to receive a 60-day advance notice of plant closings or mass layoffs through the Worker Adjustment and Retraining Notification Act. The act is intended to provide workers and their families opportunity to adjust to the forthcoming loss of employment, to enter skill-training programs, or look for other employment. Workers who are participating in strikes or who have been locked out in labor disputes, and regular federal, state and local government employees are not protected by the act.


WARN is not activated if the plant closing or mass layoff affects fewer than 50 workers at a single employment site; if 50-499 workers lose jobs but that number is less than one third of the total workforce at a single location; or if the layoff is for six months or less. Penalties may apply if an employer violates the WARN Act.


Employers may not be required to give 60-day advance notice in the event of unforeseeable business circumstances or if the closing or mass layoff is due to a natural disaster.

RELATED TERMS
  1. Family And Medical Leave Act - ...

    The Family and Medical Leave Act (FMLA) was signed into law on ...
  2. Layoff

    1. When a company eliminates jobs regardless of how good the ...
  3. Severance Package

    A bundle of pay and benefits offered to an employee upon being ...
  4. Department Of Labor - DOL

    A U.S government cabinet body responsible for standards in occupational ...
  5. Employee Benefits Security Administration ...

    A division of the Department of Labor (DOL) charged with enforcing ...
  6. Value Of Risk (VOR)

    The financial benefit that a risk-taking activity will bring ...
RELATED FAQS
  1. Why did the U.S. government take control of the steel industry in 1952?

    In early 1950, Senator McCarthy began seeing communists in every shadow, prompting him to accuse the Truman administration ... Read Full Answer >>
  2. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  3. What is the difference between a direct and an indirect distribution channel?

    A direct distribution channel is organized and managed by the firm itself. An indirect distribution channel relies on intermediaries ... Read Full Answer >>
  4. How can an investor determine a company's annual return from looking at its financial ...

    The funds in a share premium account cannot be used for a company's general expenses. These funds are restricted in terms ... Read Full Answer >>
  5. Will a hike in the minimum wage result in deadweight loss to businesses and labor?

    There have been studies which show that hikes in minimum wage create deadweight loss to business and labor. It is possible ... Read Full Answer >>
  6. How do companies identify and manage business risk?

    In each stage of the business life cycle, companies face both internal and external risks that can have detrimental effects ... Read Full Answer >>
Related Articles
  1. Personal Finance

    The Layoff Payoff: A Severance Package

    If you must leave your job, go out fighting for the best benefits you can get.
  2. Budgeting

    Layoff Protection Plans: Good Deal Or Gimmick?

    If you get laid off, these plans can be of great value, but the best protection may be to avoid big purchases altogether.
  3. Professionals

    Mass Layoffs: The Hardest-Hit States

    The mass layoff data for December has been released, and while the numbers are far from good, they have been a lot worse.
  4. Budgeting

    Layoffs: Know The WARNing Signs

    Layoff rumors can run rampant, but if your company is required to give you two months' notice, you can plan for unemployment.
  5. Economics

    What is a Business Model?

    Business model is the term for a company’s plan as to how it will earn revenue.
  6. Professionals

    Understanding Operations Management

    Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize profits.
  7. Personal Finance

    Protect Your Teen When They Work Over The Summer

    If your child is working a summer job, here are some rules you should know about what he or she is allowed to do.
  8. Retirement

    Why Working Longer To Save More Is A Bad Strategy

    If your retirement plan mostly consists of working longer to earn and save more money, you might need to rethink that strategy.
  9. Personal Finance

    Why Do Employers Have To Fill Out The I-9 Form?

    With all the employment opportunities in the U.S. attracting people from around the world, the I-9 form establishes who is eligible to work here.
  10. Personal Finance

    Employer? Steps To Fill Out Immigration's I-9 Form

    Step-by-step, here's how you and the employee you've hired fill out this required form from the U.S. Citizenship and Immigration Services.

You May Also Like

Hot Definitions
  1. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  5. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  6. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
Trading Center