What is a significant outcome of failing to comply with the WARN Act?

The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers with 100 or more employees must provide a 60-day notice to workers and state or local officials before a plant closing or mass layoff. When an employer fails to comply with this requirement, one significant outcome is the potential for lawsuits from employees who suffer as a result of the lack of notification. These lawsuits can seek damages that may include back pay and benefits for the period that the notice should have been provided.

This legal framework aims to give employees reasonable time to prepare for job loss, seek new employment, or enroll in retraining programs, which emphasizes the importance of compliance. While other outcomes, such as employee retention or mandatory retraining, may be desired or beneficial, they are not direct consequences of WARN Act violations. Instead, the potential for litigation is a clear and immediate risk associated with non-compliance, making it the most significant and relevant consequence.