The Worker Adjustment and Retraining Notification Act requires employers with 100 or more employees to give 60 calendar days notice before plant closings or mass layoffs affecting 50 or more workers.
Why WARN Act matters for employers
The WARN Act covers employers with 100 or more full-time employees or employees working an aggregate of 4,000 hours per week. Notice must be given to affected employees, their union representatives (if applicable), the state dislocated worker unit, and the local chief elected official. Notice may be reduced below 60 days in limited circumstances including unforeseeable business circumstances, natural disasters, and faltering business.
Penalties for WARN Act violations include back pay and benefits for each day of violation (up to 60 days) and civil penalties of up to $500 per day. Employers who close facilities or lay off workers should consult legal counsel before acting to determine whether WARN obligations apply and whether any exceptions reduce the notice period.
How BEG handles WARN Act for clients
BEG Managed Payroll handles WARN Act as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to WARN Act on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage WARN Act themselves?
No. A managed payroll provider handles WARN Act as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if WARN Act is handled incorrectly?
Errors related to WARN Act can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle WARN Act for managed payroll clients?
BEG tracks, calculates, and remits everything related to WARN Act as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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