How many employees need to be laid off to trigger the WARN Act?

Under federal law, the WARN Act applies when 50 or more employees are laid off at a single site within 30 days (if they make up 33% of the workforce, or 500+ employees regardless of percentage). California's WARN Act is broader, covering 50 or more employees within 30 days without the percentage requirement, and applying to employers with 75+ employees.

Can my employer include WARN Act pay in my severance package?

Some employers try to fold WARN Act obligations into the severance payment. If your agreement says the severance includes WARN pay, the actual voluntary severance amount is smaller than it appears. Make sure you understand how the payment is structured and whether WARN pay is being counted separately.

Laid Off in a Mass Layoff in Los Angeles: Your WARN Act Rights

Q: How much is WARN Act pay worth?

If your employer violated the WARN Act by failing to provide 60 days' notice, they may owe each affected employee up to 60 days of back pay and benefits. This is a penalty for non-compliance and is separate from any voluntary severance payment.

If you were laid off as part of a large-scale reduction at your company, you may have rights beyond whatever severance they offered. The WARN Act requires employers to give advance notice before mass layoffs. If they didn't, they may owe you up to 60 days of pay and benefits. And California's version of the law is broader than the federal one.

The Federal WARN Act

The Worker Adjustment and Retraining Notification Act requires employers with 100 or more employees to provide 60 days' written notice before a plant closing or mass layoff.

A "mass layoff" under federal law means a reduction affecting at least 50 employees at a single site during a 30-day period (if those employees make up at least 33% of the workforce at that site), or a layoff of 500 or more employees at a single site regardless of percentage.

If your employer failed to provide the required 60 days' notice, they owe each affected employee up to 60 days of back pay and benefits. This is not severance. It's a penalty for failing to comply with the law.

California's WARN Act Is Broader

California has its own WARN Act (Labor Code Sections 1400-1408), and it casts a wider net than the federal version.

Lower threshold. California's law applies to employers with 75 or more employees (compared to 100 under federal law).

Broader definition of mass layoff. California defines a mass layoff as 50 or more employees within a 30-day period, without the 33% requirement that federal law includes.

Relocation coverage. California's WARN Act also covers relocations of 100+ miles, which the federal version handles differently.

The penalty is the same: up to 60 days of pay and benefits for each affected employee. For Los Angeles workers, this can add up to a significant amount.

How This Affects Your Severance

WARN Act pay and severance are separate obligations. Your employer owes you WARN Act pay if they violated the notice requirement, regardless of the severance agreement. But here's what often happens in practice:

Some employers fold WARN pay into the severance. They offer you a severance package and claim it satisfies their WARN Act obligation. Read your agreement carefully. Does it say the severance payment includes WARN Act pay? If so, you might actually be getting less true severance than you think. If 60 days of your severance is actually WARN Act pay the company owes you anyway, the voluntary severance component is much smaller.

Some employers ignore the WARN Act entirely. They lay off hundreds of people without proper notice and hope no one calls them on it. If you were given little or no advance notice of a mass layoff, you may have a WARN Act claim worth 60 days of pay on top of whatever severance is offered.

The release matters. If the severance agreement includes a release of WARN Act claims, signing it means you give up the right to pursue those claims. Make sure the severance offer adequately compensates you for both the release of claims and the WARN Act pay you may be owed.

Additional Rights in Group Layoffs

If you're over 40, the OWBPA gives you 45 days (not 21) to review the severance agreement in a group layoff. Your employer must also disclose the job titles, ages, and selection criteria for everyone who was and wasn't selected. This helps you evaluate whether age played a role.

California also requires employers to notify the Employment Development Department (EDD) of mass layoffs, which triggers rapid response services including job placement assistance and retraining programs.

LA-Specific Context

Los Angeles has seen significant waves of layoffs in recent years, particularly in tech, entertainment, and startups. Companies in these industries sometimes grow and contract rapidly, and the layoff process isn't always handled with proper attention to legal requirements.

If you were part of a large layoff at a tech company, a studio, or any other employer in the LA area and you received little or no advance notice, your employer may have violated the WARN Act. This is worth investigating before you sign anything.

What to Do

Check the timeline. When were you notified of the layoff? When was your last day? If there were fewer than 60 days between notice and termination, there may be a WARN Act violation.

Count the numbers. Was this a large-scale layoff? Were 50 or more people affected within a 30-day period? Ask around or check press coverage.

Read your severance agreement. Does it mention the WARN Act? Does it try to include WARN pay in the severance amount? Does the release cover WARN Act claims?

Consult an attorney. WARN Act claims can be worth significant money, and they're separate from your other legal rights. Contact our employment team for a free evaluation of your severance agreement and WARN Act rights. We represent employees throughout Los Angeles and Southern California.