What trigger events require my company to comply with state and/or federal WARN Act provisions, and which are most open to court interpretation?

There are four types of trigger events:

  • Temporary or permanent plant closing
  • Mass layoff
  • Termination
  • Relocation

Termination trigger events are most open to court interpretation.

A termination under state law is "the cessation or substantial cessation of industrial or commercial operations." The act does not give any indication as to what qualifies as a "substantial cessation" of operations. The courts have to decide what constitutes a "substantial cessation" unless it is clarified by subsequent regulations.

The other three trigger events – plant closing, mass layoff and relocation - are clearly defined under state and/or federal laws.