What Is the WARN Act and What Does It Have to Do With the Twitter Layoffs?

A mass layoff of Twitter employees began after billionaire Elon Musk took over the company in October. However, it raised allegations that these cuts were in violation of the Worker Adjustment and Retraining Notification (WARN) Act.

Some of the company's top executives were ousted last week, but cuts continued as Twitter employees learned whether they would remain employed by the social media company Friday morning.

NBC reported that a federal lawsuit was filed against Twitter on Thursday in San Francisco, California, alleging that the layoffs were in violation of the federal WARN Act.

This policy, passed by Congress in August 1988 and made law in February 1989, is meant to help employees and communities plan around layoffs and plant closings, according to the U.S. Department of Labor.

"For many workers who have been dislocated due to a layoff or plant closure, early intervention can play an important role in their successful re-employment," officials with the Department of Labor said.

In certain circumstances, employees who are laid off must receive written notice of their job loss 60 days in advance. The Department of Labor is not responsible for this enforcement, rather the policy is enforced through private lawsuits in federal courts.

A spokesperson with the Department of Labor told Newsweek that the department can provide guidance and information about the WARN Act, but it does not issue formal interpretations of the law.

"The Department provides advice that represents the Department's best judgment about what WARN means, but it is not binding in the courts, and it does not replace the advice of an attorney," the spokesperson said.

There are some exceptions to this policy, including unanticipated business circumstances or natural disasters that lead to sudden layoffs.

In addition to the federal WARN Act, some states have enacted their own versions of the policy.

Twitter has offices throughout the country, and some of them are located in states that have their own versions of the WARN Act, including California, Illinois and New York.

According to California's Employment Development Department, the California WARN Act applies to a "covered establishment" that has employed at least 75 full- and part-time employees in the last 12 months.

Notice must be given if 50 or more employees will be laid off within a 30-day period.

In Illinois, employers with 75 or more full-time employees must give 60 days notice of a plant closing or a mass layoff. This notice must be provided to the employees and state and local government officials.

"An employer that fails to provide notice as required by law is liable to each affected employee for back pay and benefits for the period of the violation, up to a maximum of 60 days," the Illinois Department of Labor reported. "The employer may also be subject to a civil penalty of up to $500 for each day of the notice violation."

New York State's WARN Act requires private businesses with 50 or more full-time employees to give 90 days notice of closing and layoffs.

Notice must be given to several agencies, including all affected employees, the New York State Department of Labor and the Local Workforce Development Board.

The department stated the act covers:

• Closings affecting 25 or more employees
• Mass layoffs involving 25 or more full-time employees (if the 25 or more employees make up at least 33 percent of all the employees at the site)
• Mass layoffs involving 250 or more full-time employees
• Certain other relocations and covered reductions in work hours

If these businesses fail to provide the required notice, they may have to pay back wages and benefits to the employees and pay a civil penalty.