WARN Act and At-Will Employment: Does At-Will Mean No Notice Is Required?

At-will employment is a common employment arrangement in the United States, allowing either the employer or the employee to terminate the employment relationship at any time, for virtually any lawful reason, with or without prior notice. While the default rule in most states is at-will employment, it does not mean that employers are exempt from providing notice in certain situations.

The Worker Adjustment and Retraining Notification Act (WARN) is a federal statute that mandates advance notice to employees in cases of large-scale layoffs and plant closures, irrespective of whether the affected jobs are at-will. The WARN Act applies to employers with 100 or more full-time employees, triggered by plant closures affecting 50 or more full-time workers, or mass layoffs of 500 or more full-time workers, or any mass layoff representing at least one-third of the workforce at a specific site.

In such cases, the employer must provide 60 days of written notice to affected employees, their union representatives (if applicable), the state dislocated worker unit, and the local government's chief elected official, specifying whether the layoff is permanent or temporary and the anticipated dates. WARN notice applies regardless of the at-will nature of the employment relationship.

The two concepts do not cancel each other out; the WARN Act is designed to protect employees during significant workforce reductions, while at-will employment governs the general terms of employment. Workers should be cautious when signing separation agreements, as these documents may contain provisions that waive WARN rights. However, if a worker is over 40, they have the right to review the release for 21 days (45 days for group layoffs) and revoke it within 7 days after signing.