As some companies consider reductions in force amid uncertain economic conditions, employers need to prioritize compliance with state laws governing mass layoffs and plant closings, which provide regulations on top of the federal WARN Act.

The WARN Act requires employers with 100 or more employees to provide employees with 60 days of paid notice if they conduct a qualifying mass layoff (typically of 500 or more employees) or plant closing. Failing to comply can result in expensive litigation and can leave employers on the hook for lost wages, daily penalties, and attorneys’ fees.

In addition to the federal mandates, numerous states have their own rules governing mass layoffs and plant closings, and employers who aren’t cautious could face consequences under state laws, even if they comply with federal law.

For example, some states have their own “mini-WARN” laws covering circumstances broader than what’s covered under federal law, such as smaller employers and layoffs. California’s law encompasses facilities with as few as 75 employees and layoffs of 50 or more, while Wisconsin’s law applies to employers with as few as 50 employees and layoffs of 25 or more.

State mini-WARN laws may also impose requirements like longer notice periods or heightened reporting. For instance, New York and New Jersey both require covered employers to provide at least 90 days’ notice before a qualifying layoff or plant closing.

Other states have regulations that aren’t as extensive, but still...

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