DOL Issues COVID-19 WARN Act Guidance

Over the weekend, the Department of Labor published Frequently Asked Questions (FAQs) addressing COVID-19 issues under the federal Worker Adjustment and Retraining Notification Act (WARN). The FAQs break little new legal ground, but highlight the challenges employers face. Here are some key takeaways:

May employers claim an exemption from WARN for terminations caused by COVID-19?

The FAQs answer this question by suggesting that employers review the "unforeseeable business circumstances" exception. That exception, when it applies, requires that WARN notice be provided as soon as practicable. The FAQs do not mention the exception for natural disasters. The WARN regulations state the natural disasters exception applies only to the direct results of a natural disaster, and in any event WARN notice must be provided as soon as practicable. Whether that regulation is a valid interpretation of the statute is an open question. The FAQs also do not discuss any of the case