{"id":10846,"date":"2026-06-01T18:25:12","date_gmt":"2026-06-01T18:25:12","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/warn-act-requirements-for-workforce-restructuring-caused-by-the-coronavirus-pandemic\/"},"modified":"2026-06-01T18:25:12","modified_gmt":"2026-06-01T18:25:12","slug":"warn-act-requirements-for-workforce-restructuring-caused-by-the-coronavirus-pandemic","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/warn-act-requirements-for-workforce-restructuring-caused-by-the-coronavirus-pandemic\/","title":{"rendered":"WARN Act Requirements for Workforce Restructuring Caused by the Coronavirus Pandemic"},"content":{"rendered":"\n
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April 21, 2020 Update.<\/strong>\u00a0 On April 17, 2020, Governor Andrew Cuomo issued<\/p>\n

<\/p>\n

Executive Order No. 202.19<\/p>\n

<\/p>\n

, which, among other things, relaxes New York\u2019s WARN Act requirements for small businesses that receive funding from the federal Paycheck Protection Program, rehire previously laid-off employees, and subsequently engage in a restructuring that would generally trigger a second WARN notice.\u00a0 Under those limited circumstances, the employer need not comply with the 90-day notice requirement for the second restructuring, so long as the employer provided the required WARN notice when it initially laid off the employees and provides notice of the second restructuring as soon as practicable.\u00a0 The Executive Order only applies to restructurings that occur between April 17 and May 17, 2020.<\/p>\n

March 25, 2020 Update.\u00a0<\/strong> On March 23, 2020, the California Department of Industrial Relations, Division of Labor Standards Enforcement and the Employment Development Department (\u201cEDD\u201d) provided guidance concerning Executive Order N-31-20<\/a><\/strong> issued by Governor Newsom on March 17, 2020.\u00a0 That guidance generally summarizes the California WARN Act requirements and the executive order and provides considerations for interpreting the California WARN Act, as modified by the executive order.\u00a0 First, the guidance notes that the newly created \u201c\u2018business circumstances\u2019 [exception] should be understood to be consistent with the identical exemption under the federal WARN Act.\u201d\u00a0 (citing to 29 U.S.C. \u00a7\u00a02103(b)(2)(A) and 20 C.F.R. \u00a7\u00a0639.9(b))\u00a0 According to the guidance, that includes the U.S. Department of Labor\u2019s interpretation that \u201c[a] government ordered closing of an employment site that occurs without prior notice\u201d constitutes such business circumstances.\u00a0 Second, the guidance reiterates that notice is required under the California WARN Act, and that the requirement of \u201cas much notice as is practicable\u201d also \u201cbe read to be consistent with its usage in the federal WARN Act.\u201d\u00a0 Cases interpreting the federal WARN Act provision concerning reasonable notice are therefore instructive in determining the amount of notice that is practicable in California.
\u00a0<\/p>\n

*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *<\/p>\n

Given the unprecedented challenges to businesses arising as a result of the COVID-19 (\u201cCoronavirus\u201d) pandemic, including government-mandated closures of non-essential businesses, many businesses are considering layoffs or employment terminations.\u00a0 As noted below, the extraordinary circumstances of the Coronavirus outbreak may excuse employers from the full statutory notice obligations; however, the statutory exclusions of the federal Worker Adjustment and Retraining Notification Act (the \u201cWARN Act\u201d) and state-law analogues may nevertheless require some notice and record-keeping and, thus, it is worth keeping in mind the obligations imposed by those statutes.\u00a0 In addition, employers should also bear in mind other relevant state and local laws as well as employment contracts or collective bargaining agreements in taking any such actions.<\/p>\n

Generally speaking, shorter-term layoffs are not subject to advance notice requirements.\u00a0 Under the federal WARN Act, layoffs up to six months do not require advance notice.\u00a0 Most state analogues have similar provisions.\u00a0 In addition, the federal Act and most state analogues have an exception, exempting terminations resulting from \u201cunforeseeable business circumstances\u201d and, although there is little authority yet in the context of the Coronavirus outbreak, the general belief is that the exception will apply and that the 60-day advance notice requirements will not be applicable in this emergency.\u00a0 Indeed, the \u201cunforeseeable business circumstances\u201d exception was recently added to the California WARN Act through an executive order issued by the Governor of California in order to aid California employers affected by Coronavirus\u2014further suggesting that the outbreak should be considered an \u201cunforeseeable business circumstance.\u201d\u00a0 As discussed below, employers invoking this exception should be mindful that certain notice requirements still apply.
\u00a0<\/p>\n

Federal WARN Act<\/strong><\/p>\n

Under the federal WARN Act, certain employers are required to provide employees with 60-days advance notice<\/strong> prior to closing any employment site or conducting a mass layoff.<\/p>\n

Covered Employer.<\/strong>\u00a0Employers must comply with the WARN Act if, they employ:<\/p>\n