Payment in lieu of warn

WARN requires 60 calendar days' written notice. The law makes no provision for any alternative such as pay in place of a notice. While an employer who pays workers for 60 calendar days instead of giving them proper notice technically has violated WARN, the provision of pay and benefits in place of a notice is a possible option. Because WARN provides for back pay and benefits for the period of the violation, up to 60 days, generally this approach by an employer—pay in place of notice—means that the employer has already met the penalty specified in the Act, if the payment is not required to be made. WARN allows voluntary payments of wages and benefits to be offset against any damages that might be awarded.

https://webapps.dol.gov/elaws/eta/warn/faqs.asp#:~:text=An%20employer%20that%20fails%20to,not%20required%20to%20be%20made.

#60DayNotice #EmployeeRights #Legal #WARN

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I live in NJ was notified 12/31/24 and was off boarded 3/28/25. The NJ Ward Act is 90 days, not 60.

The NJ WARN Act rule requires employers to provide at least 90 days' advance notice for mass layoffs, plant closings, or transfers of operations. Unlike the federal rule, the New Jersey version includes mandatory severance pay (one week of pay per year of employment) for all terminated employees, even if proper notice is given, and an additional four weeks' pay if the notice period is not met. The law applies to all employees, including part-time workers, and counts layoffs across all state locations to determine if the threshold is met.

@OP A company is not always required to provide notice if it offers severance benefits, but it must comply with the WARN Act or state laws for mass layoffs and plant closings. If an employer fails to give the required 60 days' notice under the federal WARN Act, it can provide a severance package instead of notice.

The severance package can serve as payment in lieu of notice and may be used to offset any damages the company owes. However, the severance package must be "voluntary," meaning it isn't already required by another law, contract, or company policy.

Key points about WARN Act and severance

WARN Act notice: For qualifying employers, the federal WARN Act requires 60 days' advance written notice for mass layoffs or plant closings.

Severance as pay in lieu of notice: An employer can offer a severance package as an alternative to the 60-day notice period. This package can include pay and benefits for the 60 days.

Offsetting damages: If an employer provides a voluntary severance package, it can be used to offset the back pay and benefits the company would otherwise owe for violating the WARN Act.

Voluntary payments: The severance package must be "voluntary," meaning it's not something the company is already legally required to pay under a separate law, contract, or established company policy. If it is a mandatory payment, it cannot be offset against WARN damages.

State-level laws: Some states have their own "WARN" acts that may require longer notice periods or have different requirements than the federal law.

Thread regarding Verizon Communications Inc. layoffs

Payment in lieu of warn

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