The 2022-23 tech layoffs have claimed hundreds of thousands of employee jobs. Meta (Facebook, Instagram, Whatsapp), Alphabet (Google), Microsoft, and of course the very public slashing of up to 50% of the Twitter workforce are only a few of the layoffs that have become an unfortunate reality in the United States tech sector. While employers have the right to terminate employment subject to a few exceptions, companies have largely blamed the recent spate of layoffs on economic hardship.
“Employers do whatever they can to keep costs down, especially in tough economies. Unfortunately, this can come at the expense of employees,” says attorney Eric A. Panitz of Wrongful Termination Law Group.
Still, there has been more than a little talk of lawsuits, with particular renewed interest in the Workers Adjustment and Retraining Notification (WARN) Act of 1998. Affected Twitter employees have for example filed a class action suit against the company, claiming WARN Act violations, and a subset of those also filing gender and disability discrimination lawsuits.
If you’ve been laid off by a company covered by the WARN act, contacting an employment attorney with WARN Act experience is advisable, but knowing in advance about the Act and its provisions for laid off employees can help you prepare for that situation.
How The Federal WARN Act Protects Employees
“The WARN Act provides a buffer against the disruption a sudden dismissal can cause in your life, ” says Panitz. The WARN Act is a federal law that requires employers to provide advance notice to employees and local communities in the event of a mass layoff event. The Act covers employers with 100 or more employees and covers both full-time and part-time workers.
The purpose of the WARN Act is to provide workers and their families with sufficient notice to prepare for the loss of employment and to provide time for local communities to plan for the economic impact of a mass layoff or facility closure.
Under the WARN Act, employers must provide 60 days’ advance notice to affected employees, local government officials, and state dislocated worker units. The notice must be given in writing and must include detail on the reason for the mass layoff or facility closure, the planned date of the layoff, and the number of workers who will be affected.
For employers that do not provide the required notice, the affected employees may be entitled to back pay and benefits for the period of the violation, up to a maximum of 60 days. Additionally, the employer may be subject to penalties and fines.
The WARN Act is an important tool for protecting the rights of workers and their families, as well as providing advance warning to local communities of the impact of significant workforce reductions.
Key Points To Consider
Have you been laid off by an employer eligible for the WARN Act? In order to properly exercise your rights, there are a few key concepts to understand.
For example, there are generally three exceptions to the WARN act that could exempt an employer or mitigate any consequences they face. The first is if the layoff was due to a natural disaster impeding business operations. The second is if the layoff is caused by an unforeseeable business circumstance. And the third exception is for faltering companies that can demonstrate their inability to get funding.
It’s also worthwhile to look into your state’s specific laws concerning WARN Act claims. Some states have so-called “mini WARN Acts” which guarantee additional rights or remedies under state law. For example, California’s mini WARN Act is applicable to employers with at least 75 employees instead of the federally-mandated 100.
Finally, when you’ve been laid off, it’s a good idea to be aware of all available resources, such as government programs that give financial assistance.
Filing a WARN Act Case
A wrongful termination lawyer can help you confirm whether the WARN Act constrains your employer’s layoff, whether you meet the criteria to be plaintiff, and help you explore your options. An employment attorney knowledgeable about the WARN act can advise whether to file an individual lawsuit, join a class action suit with other workers, or enter settlement negotiations with your employer.
“It is not uncommon for employers to include class action waivers in their employment contracts, so it’s important for employees to be aware of the implications of these clauses,” Panitz advises.
When filing a suit of this nature with the appropriate agency or court of law, it’s critical to include all relevant evidence and facts, such as documents showing that you were laid off without adequate advance notice or proof of employer eligibility under the act.
The Worker Adjustment and Retraining Notification (WARN) Act is an important piece of legislation that protects workers in the event of a mass layoff. It is key to understand your rights under the law as you could have a legitimate claim to back wages and compensation, depending on the circumstances.
