WARN Act And Sequestration—What Course To Follow?

If you provide goods or services to the Department of Defense as a prime contractor or subcontractor, you may be concerned about the sequestration of funds beginning January 2, 2013 and its impact on your business. Worrying about your level of contract funding (current or new) and having sufficient work for your employees is a headache. Your headache may have become a migraine. Now, however, you also may have concerns about compliance with the Worker Adjustment and Retraining Notification Act (or "WARN Act").

Here's a high-level summary of why:

WARN Act Requirements. As a general rule, the WARN Act requires companies with more than 100 employees to give written notice of a facility closing or mass layoff to the affected employees (and certain governmental offices) at least 60 days prior to the facility closing or layoff. Employees who have worked less than 6 months in the past 12 months and employees who work an average of less than 20 hours a week are excluded