On Might 13, 2025, Governor Ferguson signed ESSB 5525, creating vital obligations for Washington employers conducting particular mass layoffs and enterprise closings. Since 1989, the federal Employee Adjustment and Retraining Notification Act (WARN Act) has required employers with 100 or extra full-time staff to offer advance discover after they’re conducting mass layoffs or plant closings, as outlined within the regulation. Through the years, states like California have handed their very own variations of the WARN Act, that are sometimes called “mini-WARN Acts.” Efficient July 27, 2025, Washington may even have a mini-WARN Act. Listed below are the important thing necessities and main variations from the federal WARN Act:
Coated employers: All non-public employers with 50 or extra staff in Washington (excluding part-time staff). It is a vital departure from the federal WARN Act, which makes use of 100 or extra staff (excluding part-time staff) as the edge for outlining a lined employer.
Affected staff: Discover necessities are triggered for workers who can fairly anticipate to expertise an employment loss due to a enterprise closing or mass layoff.
Enterprise closing or mass layoff: Mirroring the federal WARN Act’s plant closing normal, Washington regulation defines a enterprise closing because the everlasting or momentary shutdown of a single website of employment of a number of amenities or working models that can lead to an employment loss for 50 or extra staff, excluding part-time staff.
A mass layoff is outlined as a discount in pressure leading to an employment loss throughout any 30-day interval for 50 or extra staff, excluding part-time staff. In contrast to the federal WARN Act, it’s not required for the 50 or extra staff to make up no less than 33% of energetic staff at a single website of employment to set off an employment loss. This implies employers conducting layoffs throughout the state at a number of areas might want to verify that their cumulative layoffs don’t set off the mass layoff normal.
Additionally, if a short-term mass layoff occurs (outlined as 3 months or much less), and is subsequently prolonged on account of surprising enterprise causes adequate to set off the employment loss normal, the employer should give discover as quickly because the extension turns into fairly foreseeable.
The definition of an employment loss is similar because the federal WARN Act (termination that’s not for trigger, voluntary separation, or retirement; a layoff exceeding 6 months; or a discount in hours for an worker of greater than 50% throughout every month of a 6-month interval) and doesn’t embody some conditions involving relocation or consolidation the place particular necessities are met.
Half-time staff: Just like the federal WARN Act, part-time staff are excluded from each the full used to find out employer protection and the 50-employee thresholds for a enterprise closing or mass layoff. The regulation adopts the identical definition for part-time staff because the federal WARN Act (these working a median of fewer than 20 hours per week, or who’ve been employed for fewer than 6 of the 12 months earlier than the date discover can be required), however provides a collective bargaining settlement (CBA) wrinkle by saying that if there’s a definition for part-time worker in an relevant CBA, the CBA’s definition will management.
60-day written discover: Employers should present written discover 60 days earlier than an employment loss happens on account of a enterprise closing or mass layoff to: (1) Washington’s Employment Safety Division (ESD); and (2) the affected staff, or if the workers are represented, to the union. That is completely different from the federal WARN Act that requires discover to be given to every affected worker even when they’re represented by a union, and to the chief elected official of native authorities the place the mass layoff or enterprise closing is happening.
Contents of written discover: Most discover necessities mirror the federal WARN Act, however employers now additionally want to incorporate: (1) an announcement about whether or not the enterprise closing or mass layoff is predicted to be momentary (if relevant) and if it’s anticipated to last more or shorter than 3 months; (2) an announcement that the whole enterprise is to be closed (if relevant); (3) the addresses of the affected staff for discover given to ESD; (4) whether or not the mass layoff or enterprise closing will lead to, or is the results of, the relocation or contracting out of the employer’s operations or the workers’ positions; and (5) extra notices of the date or schedule of dates for any enterprise closing or mass layoff which are prolonged past the timeframes introduced within the unique discover. Additionally, in contrast to the federal WARN Act, the regulation requires almost all info to be shared with everybody, not simply particular recipients. For instance, this regulation requires job titles and names of affected staff to be given to all affected staff, whereas the federal WARN Act doesn’t.
Exceptions for particular circumstances: Just like the federal WARN Act, no discover is required for particular circumstances that meet the faltering enterprise, unforeseeable enterprise circumstances, or pure catastrophe exceptions. Nonetheless, the state regulation permits the faltering enterprise exception to be utilized to a mass layoff (not only a enterprise closing), and it particulars sure circumstances involving development initiatives and websites the place no discover can be required. Importantly, ESD will create guidelines requiring particular documentation for these exceptions, and if the exception ends in the course of the 60-day discover interval, discover should nonetheless be given.
Particular safety for workers on WPFML: Workers who’re on Washington’s Paid Household and Medical Go away (WPFML) can’t be included in a mass layoff, until the unexpected enterprise circumstances or pure catastrophe exemptions are met, or within the case of sure development initiatives and websites. Workers on WPFML can nonetheless be included in a enterprise closing.
Penalties and lawsuits: Employers who fail to offer discover are liable to pay staff for as much as 60 days of: (1) again pay for every day discover wasn’t supplied (with a particular calculation included within the regulation); and (2) the worth of any advantages the worker would have been entitled to if their employment hadn’t been misplaced, together with medical bills incurred by the worker that will have been lined beneath a profit plan. The regulation permits the penalty to be decreased for sure issues like wages paid in the course of the violation interval and funds to 3rd events like premiums for well being advantages. Additionally, just like the federal WARN Act, there are civil penalties, and employers might be sued for these violations, which means lawyer’s charges would even be obtainable.
Vendor and purchaser tasks: Just like the federal WARN Act, the discover obligations triggered by the sale of a enterprise are break up between the vendor (by the efficient date of the sale) and purchaser (after the efficient date).
Suggestions: Employers with 50 or extra full-time staff in Washington should now fastidiously contemplate whether or not their layoff or closing processes set off these discover obligations. In the event that they do, 60 days’ discover will have to be supplied, and it’s vital to present your self much more than 60 days to make sure your notices and different compliance steps are lined. The implications for failing to present discover are steep, and the opportunity of lawsuits the place lawyer’s charges are on the road makes them even steeper. We’ll be updating our current sources in mild of this new regulation, however if you wish to be taught extra in regards to the federal WARN Act within the meantime, try our Authorized Information, At a Look: WARN Act, and join together with your Vigilant Regulation Group employment lawyer about any layoff or closing that you simply suppose would possibly set off discover.
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