NY WARN Act: Layoff Notification Requirements Explained

Picture this: you're a dental practice owner facing an unexpected building closure that forces you to lay off most of your staff. How much advance notice must you legally provide? The answer depends on the New York WARN Act - a law that could cost you thousands in penalties if you get it wrong.

The Worker Adjustment and Retraining Notification (WARN) Act protects employees by requiring advance notice of significant layoffs. While many Long Island business owners focus on federal requirements, New York's version is actually stricter and applies to smaller companies.

What Is the NY WARN Act?

The NY WARN Act is a state law that requires covered employers to provide written notice before conducting mass layoffs, plant closures, or significant workforce reductions. Think of it as a "heads up" requirement that gives employees time to prepare financially and search for new jobs.

Unlike the federal WARN Act which only covers companies with 100+ employees, New York's version kicks in at just 50 employees. This means many Long Island medical practices, law firms, and professional service companies that think they're exempt may actually be covered.

Who Must Comply and When

You're subject to NY WARN requirements if you employ 50 or more full-time workers and plan to conduct:

• Mass layoffs: Affecting 25+ employees at a single location within any 30-day period
• Plant closures: Shutting down a facility that results in job loss for 25+ employees
• Relocation: Moving operations more than 50 miles away, affecting 25+ workers

The law counts both permanent layoffs and temporary layoffs expected to last six months or longer. Part-time employees working fewer than 20 hours per week don't count toward the thresholds, but everyone else does - including managers and administrative staff.

Notice Requirements and Timing

When a triggering event occurs, you must provide written notice at least 90 days in advance to:

• Affected employees (or their union representatives)
• The New York State Department of Labor
• Local workforce development boards
• The chief elected official of the municipality where layoffs will occur

The notice must be specific and detailed, including the expected date of layoffs, whether they're permanent or temporary, the job titles affected, and whether bumping rights exist. Generic "we might have layoffs someday" notices don't satisfy the requirement.

There are limited exceptions for unforeseeable business circumstances (like a major client suddenly canceling a contract) or natural disasters, but these exceptions are narrow and require you to provide as much notice as practicable.

Why This Law Exists

From the employee perspective, sudden job loss without warning can be financially devastating. The 90-day notice period allows workers to:

• Save money and adjust their budgets
• Begin job searching while still employed
• Explore retraining opportunities
• Make informed decisions about major purchases or commitments

For employers, compliance demonstrates respect for your workforce and can preserve relationships with remaining employees. It also protects you from significant penalties and potential lawsuits.

Penalties for Non-Compliance

The consequences of failing to comply with NY WARN requirements can be severe. You may owe each affected employee:

• Back pay for each day notice was insufficient (up to 60 days)
• Benefits that would have been provided during the notice period
• Civil penalties payable to the state
• Attorney fees if employees sue successfully

For a medical practice laying off 30 employees without proper notice, this could easily reach six figures in penalties and back pay.

Key Considerations for Long Island Employers

Many business owners assume they're too small to worry about WARN requirements, but New York's 50-employee threshold catches more companies than expected. Count carefully - you might include employees across multiple locations if they report to the same management structure.

The 90-day notice requirement also means you need to plan layoffs well in advance. You can't wait until the last minute to comply, which requires integrating WARN considerations into your business planning process.

Documentation is crucial. Keep detailed records of your employee count, the reasons for layoffs, and when notices were provided. If you're ever challenged, you'll need to prove compliance.

How Benton Oakfield Helps Navigate Compliance

Employment law compliance can feel overwhelming, especially when you're already dealing with the business challenges that led to workforce reductions. At Benton Oakfield, we help Long Island employers understand their compliance obligations and implement systems to stay on track.

We work with your legal counsel to ensure you understand when WARN requirements apply to your situation, help you calculate employee counts correctly, and guide you through the notice process if layoffs become necessary. Our goal is to help you focus on running your business while staying compliant with employment laws.

Rather than trying to navigate these complex requirements alone, let us help you create a compliance framework that protects both your business and your employees.

Ready to discuss your compliance needs? Contact our team to schedule a consultation and ensure your business is properly protected.

Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This guide is for educational purposes only. Please contact your Benton Oakfield representative to discuss how this applies to your specific situation.

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