Year-End Layoffs: How Small Cuts Add Up to a WARN Act Violation

Year-end cuts rarely happen all at once. An employer eliminates 40 positions in October, another 35 in December, and a few more in January. Each reduction looks too small to trigger the WARN Act. Together, they may not be. Year-end is when reductions pile up. U.S. employers announced nearly 260,000 job cuts in the fourth quarter of 2025 alone.

KEY TAKEAWAYS

• The federal WARN Act requires 60 days’ written notice before a plant closing or mass layoff.
• Employment losses at a single site within any 90-day period are counted together.
• Notice for a December 31 separation was due November 1.
• Liability includes up to 60 days of back pay and benefits per affected employee, plus civil penalties.
• Many states have their own notice laws with lower thresholds and longer notice periods.

Does the WARN Act Apply to Your Business?
The federal WARN Act generally applies to employers with 100 or more full-time employees and requires 60 days’ written notice before a plant closing or mass layoff. Employers must provide specific notice to impacted employees, the applicable state agency, and local government.

The Aggregation Trap: How Separate Layoffs Add Up
Here is what employers often get wrong: they evaluate each layoff in isolation. WARN does not. Employment losses at a single site within any 90-day period are looked at together. Two reductions that fall below the threshold separately can result in one covered event.

What Counts as an Employment Loss Under WARN?
The count generally includes:

• Terminations
• Layoffs lasting more than six months
• Hours reductions of more than 50 percent in each month of a six-month period

What Does a WARN Act Violation Cost?
Liability includes back pay and benefits for each affected employee for up to 60 days, plus civil penalties for failing to notify local government. Many states also have their own notice laws with lower thresholds and longer notice periods.

Missed the November 1 Deadline for a December 31 Layoff?
Notice for a December 31 separation was due November 1. If you are planning a year-end reduction and have not given notice, you still have options:

• Push the separation date out so employees receive a full 60 days’ notice.
• Keep affected employees on payroll with full pay and benefits through the end of the notice period.
• Do not proceed on December 31 and hope the numbers stay under the threshold.

WARN Act Checklist Before Your Next Reduction in Force

• Look back 90 days and forward 90 days.
• Count every employment loss at each site.
• Review state notice requirements.
• Talk to us before you finalize your plan.

We can help you get it right.

Disclaimer: This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Employment laws vary significantly by state and circumstance. Please contact our office regarding your specific situation.