Spikes in large-scale layoffs and anxiety over AI-driven job losses have put renewed focus on the federal Worker Adjustment and Retraining Notification (WARN) Act.

Spikes in large-scale layoffs and anxiety over AI-driven job losses have put renewed focus on the federal Worker Adjustment and Retraining Notification (WARN) Act. Recent months have seen unusually high levels of WARN notices nationwide, with more than 39,000 workers receiving WARN notifications in October 2025 alone and even higher totals earlier in the year. At the same time, more states have enacted or toughened "mini-WARN" laws, often with lower thresholds and more onerous requirements than federal WARN.

Against that backdrop, late last year, House Democrats have introduced the Fair Warning Act (H.R. 5761), which would significantly rewrite federal WARN for the first time since 1988. Below is a practical, employer-focused overview of what H.R. 5761 would do, how it differs from current WARN, and what it would mean in practice if enacted.

Who Would Be Covered?

The current WARN Act applies to employers with 100+ full-time employees, using specific counting rules and generally focusing on a single employing entity. H.R. 5761 would amend the law to instead:

• Cover employers with "50 or more employees" (part-time included), or with "an annual payroll of at least $2 million";
• Broaden the concept of "employer" to include:
  • The "entity that directly employs" an employee, and
  • A "parent, affiliate, or contracting...

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