The WARN Act

In 1989, then-President George H.W. Bush signed the Worker Adjustment and Retraining Notification (WARN) Act. This act is designed to give employees and their families time to look for new employment and prepare for the change before a business closes or performs large scale layoffs. If a business does not abide by the WARN act, they could face lawsuits and other legal actions.

If you are a business leader, it is important you are aware of the requirements of this act as it pertains to your organization. The Texas business lawyers at Slater Kennon & Jameson have the experience to help you be adequately prepared for the worst. Contact our office today at 512-472-2431 to learn more about your options from an experienced attorney.

Components of the WARN Act

The WARN act applies the following for almost all businesses with more than 100 employees:

• If employers are closing their businesses, they must give warning
• If employers are laying off 50-499 workers, they must give warning.
• If employers are laying off over 33% of the workforce, they must give warning.
• “Adequate warning” requires business leaders to inform their employees at least 60 calendar days before the closing or layoffs will occur.

However, your business could be exempt from this requirement should you face an unforeseen natural disaster, or if you have experienced severe financial losses unforeseeably. You can also be exempt if you made efforts in good faith to obtain more capital.

Contact Us

Because the WARN Act requirements can be confusing depending on your specific situation, it is important you have the assistance of a legal professional experienced in working with this complex requirement. Contact the Texas business lawyers at Slater Kennon & Jameson today at 512-472-2431 to discuss your priorities with a practiced professional.