Federal WARN Act Requirements

The Worker Adjustment and Retraining Notification (WARN) Act applies to most private-sector employers with 100+ full-time employees (excluding part-timers under 20 hours per week). It requires employers to provide 60 days’ advance written notice in certain situations:

• Plant closings: When shutting down a facility or operating unit that affects 50 or more employees at a single site.

• Mass layoffs: When laying off 500+ employees at one site, or 50+ employees if they represent at least 33% of the workforce at that location.

Failure to comply can result in steep penalties, including liability for 60 days’ worth of wages, benefits, and possible civil penalties. Beyond the financial risk, violations often lead to reputational damage and employee distrust.

Key takeaway: Even if you think WARN doesn’t apply, always verify with legal or HR counsel—mistakes are costly and hard to undo.

State Mini-WARN Laws

Many states have enacted their own versions of WARN, often referred to as “mini-WARN” acts, which can be stricter than the federal law. For example:

• New Jersey: Requires 90 days’ notice and applies to employers with 100+ employees. Even smaller layoffs may trigger obligations, and employers must provide severance pay.

• California: Covers employers with 75+ employees and includes certain relocations or transfers, not just closures.

• New York, Illinois, Maryland, and others: Each state sets its own employee thresholds, notice periods, and conditions for compliance.

For multi-state employers, tracking these varying rules is especially challenging, as compliance must be location-specific.

Key takeaway: Always check both federal and state WARN obligations—state rules often go further than federal law.

Final Paycheck Laws

Every state sets its own rules for how quickly final wages must be paid after termination:

• Same-day pay: Some states, like California and Colorado, require immediate payment on the employee’s last day if they are involuntarily terminated.

• Next payday: Many states allow final wages to be paid on the next regularly scheduled payday.

• Special rules: Some states apply different timelines depending on whether the employee was laid off, resigned voluntarily, or gave notice.

Noncompliance can expose employers to wage claims, penalties, or lawsuits — even if the delay was unintentional.

Key takeaway: Confirm final paycheck deadlines for each state where you employ staff to avoid wage disputes.

PTO Payout Requirements

Whether accrued vacation or paid time off (PTO) must be paid out upon termination varies by state:

• Required payout: States like California, Massachusetts, and Illinois treat accrued PTO as earned wages, requiring full payout at termination.

• Policy-driven payout: In states without a mandate, company policy (handbooks, contracts) dictates whether payout is required. If the policy promises payout, it becomes enforceable.

• Restrictions on “use it or lose it”: Some states ban policies that force employees to forfeit unused PTO, while others allow them if clearly outlined.

Key takeaway: Don’t assume PTO payout rules are universal—review state laws and ensure your policies are compliant and consistently applied.

Union Layoff Notice Requirements

Unionized employers must follow the terms of collective bargaining agreements (CBAs), which often go beyond statutory WARN obligations. These requirements may include:

• Advance notice to the union: Employers must notify union leadership before implementing layoffs.

• Impact bargaining: The union may have the right to negotiate the effects of layoffs, such as severance or recall rights.

• Recall or “bumping” rights: Senior employees may have the right to replace junior employees in other roles.

Failure to honor these provisions can lead to grievances, arbitration, or unfair labor practice charges.

Key takeaway: Union obligations aren’t optional — they’re legally binding. Always review the CBA before moving forward with layoffs.

Multi-Location Layoffs

Layoffs that affect multiple worksites are one of the most complex compliance areas. Key considerations include:

• Threshold calculations: Federal WARN typically applies thresholds on a “single site of employment” basis, but defining what counts as a “site” can be tricky (e.g., satellite offices, remote teams).

• State rules: Some states aggregate layoffs across locations statewide, making compliance harder for multi-site employers.

• Coordination: HR must ensure consistent timing, documentation, and messaging across affected sites while also adapting to local laws.

Key takeaway: Multi-location layoffs require careful planning and legal review to align federal and state obligations without creating gaps.

How the Layoff Compliance Checklist Generator Works

HR teams use a compliance checklist tool to streamline planning and reduce the risk of missing critical steps:

1. Input details: Users enter state(s), union status, number of employees impacted, and whether layoffs affect multiple sites.

2. Generate checklist: The tool outputs grouped tasks under Federal, State, and Union categories.

3. Color coding:

   • Red = urgent or legally required deadlines

   • Yellow = best practices

   • Green = optional or recommended steps

4. Explanations: Each item comes with a short explanation of why it matters (e.g., legal risk, employee relations).

5. Counsel reminders: Every section reinforces: “Verify with counsel before finalizing.”

6. Export: Users can export to PDF for leadership or share a read-only version with stakeholders.

Key takeaway: A checklist generator doesn’t replace legal advice, but it helps HR stay organized, demonstrate due diligence, and avoid costly oversights.

Role of Outplacement in Compliance

While compliance checklists focus on legal requirements, many employers also choose to include outplacement services in their packages. Not only does this support employees, but it can reduce legal challenges.

At TurboTransitions, for example, employees receive access to AI-powered career coaching (via PruE AI) plus human coaching and networking support—benefits that demonstrate goodwill during a difficult time.

Key takeaway: Supporting employees through outplacement strengthens compliance efforts by reducing risk of disputes.