Considering Staffing Reductions? Know Your WARN Act Obligations

As colleges and universities face shifting enrollment patterns, evolving operational models, and budget constraints, the potential for large-scale employment changes increases.

The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) — a federal labor law requiring certain employers to provide advance notice of significant workforce reductions — has growing relevance for institutions navigating financial pressures, program closures, and workforce restructuring.

Understanding your WARN obligations is essential for:

• Legal compliance
• Reducing risk
• Maintaining trust, transparency, and reputational integrity during these transition periods

The WARN Act

While primarily aimed at private-sector companies closing plants or conducting a mass layoff, colleges and universities may be subject to WARN obligations during:

• Large-scale restructuring
• Campus closures
• Outsourcing of services
• Reorganizing of non-faculty operations

WARN Act Triggers

The act applies to employers with 100 or more full-time employees when an “employment loss” affects the requisite number of employees. Certain events trigger WARN notice obligations:

• Plant Closings. A plant closing includes the permanent or temporary shutdown of an employment site that results in employment loss for 50 or more full-time employees during a 30-day period.
• Mass Layoffs. A reduction in force that isn’t a plant closing but results in employment loss at a single employment site for 500 or more employees, or 50–499 employees if they represent at least 33% of the workforce.

To determine whether a plant closing or mass layoff triggers WARN notice obligations, count the number of employees impacted. The statute defines an employment loss to include:

• Employee terminations for any reason other than discharge for cause, voluntary departure, or retirement
• Layoffs exceeding six months
• Reductions in work hours by 50% or more during each month of any six-month period
• The permanent or temporary shutdown of a facility or operating unit that results in employment loss for 50 or more full-time employees during a 30-day period
• A reduction in force that results in employment loss for 500 or more employees, or 50–499 employees if they represent at least 33% of the workforce at a single employment site

Smaller, incremental layoffs within 90 days may be aggregated if they collectively meet the above thresholds.

Statutory Requirements

If workforce changes trigger the WARN Act, provide at least 60 calendar days’ written notice to:

• Your affected employees or their representatives
• Your state’s dislocated worker unit
• Your local government’s chief elected official

Include within the written notice:

• The expected date and nature of employment loss
• A list of job titles and number of affected employees
• Information about union contracts or bumping rights (if applicable)

The statute permits a shorter notice period in limited circumstances, such as “unforeseeable business circumstances,” natural disasters, or when the employer is actively seeking capital or business to avoid closure.

Penalties for Noncompliance

If institutions fail to comply with the WARN Act, employees, their representatives, or units of local government may bring a civil lawsuit in federal court. The court may impose civil penalties of $500 per day if institutions fail to notify the local government and the court finds them liable for violations.

An institution also may owe back pay and benefits to each affected employee for the period of the violation, up to 60 days. Beyond financial liability, noncompliance can lead to additional regulatory scrutiny.

State Law Obligations

At least 13 states have enacted their own versions of the statute. These laws may differ from or expand upon federal requirements. Several state statutes apply to smaller employers, require longer notice periods or additional disclosures, or impose severance obligations or civil penalties (beyond federal law).

Early in any workforce restructuring, your institution should assess federal and state WARN obligations. For universities operating across multiple states, different (or multiple) laws may apply. Due to the statute’s technical nature and these potential state law requirements, it’s imperative that you conduct timely consultation with legal counsel in the appropriate jurisdiction.

More From UE

Checklist: Employee Layoffs Driven by Financial Pressure

Employee Offboarding Guide

Additional Resources

Department of Labor: Employer’s Guide to Advance Notice of Closings and Layoffs