H.R. 5761: Fair Warning Act of 2025

This bill, titled the Fair Warning Act of 2025, aims to amend the Worker Adjustment and Retraining Notification Act (known as WARN Act) to enhance protections for workers facing employment loss due to site closings or mass layoffs. Below are the key provisions of the bill:

Definitions and Scope of Application

The bill redefines key terms related to employment loss, including:

• Affected Employee: An employee who may reasonably expect to lose their job due to a site closing or mass layoff.
• Employer: A business employing 50 or more employees or having an annual payroll of at least $2 million.
• Employment Loss: Includes termination (excluding voluntary departures), layoffs, and significant reductions in work hours.
• Mass Layoff: A reduction in workforce affecting either 10 or more employees at one site, or 250 or more employees regardless of location.

Notice Requirements

The bill establishes stricter notice requirements for employers, mandating that:

• Employers must provide written notice to affected employees, the Secretary of Labor, and local government officials at least 90 days prior to a site closing or mass layoff.
• Notices must include information about the number of affected employees, the reasons for the layoff, whether the layoff is permanent or temporary, and details about employee rights regarding wages and benefits.

Exceptions to Notice Requirements

Employers may bypass the 90-day notice requirement under certain conditions, such as:

• Receiving urgent financing or business opportunities that could prevent the closure.
• Experiencing unforeseen circumstances like natural disasters, terrorist attacks, or significant public health emergencies.

Employee Rights and Benefits

Upon notification of a layoff, affected employees are entitled to:

• Access to a guide from the Secretary of Labor detailing available benefits and services, including unemployment compensation and retraining assistance.
• Information about available employment at other sites owned by the employer and access to training services.

Regulatory and Reporting Changes

The bill proposes the creation of a publicly available database by the Secretary of Labor to track layoffs and site closings, which will include:

• The name of the employer, number affected, and other relevant details.
• A searchable interface for users to analyze data by geographic area and industry.

Enforcement and Penalties

Employers who fail to comply with the notice provisions may face penalties, including:

• Liability for back pay and benefits for not providing adequate notice.
• Potential penalties for willful violations of notice requirements.

Key Changes to Dispute Resolution

The bill ensures that the rights of employees cannot be waived or diminished through pre-dispute agreements, preserving their ability to seek legal recourse for violations.

Summary of Changes

• Stricter notice requirements and expanded definitions regarding layoffs and affected employees.
• Enhanced protections for workers against sudden employment loss.
• Creation of a public database for better transparency in layoffs and business closings.
• Direct access to benefits information for laid-off employees.

Relevant Companies

None found