Temporary Layoff or Furlough: Who Is Covered by the WARN Act.

Short-term layoffs (6 months or less) that are later extended to last longer than originally contemplated are expressly addressed by the federal WARN Act and regulations. When a layoff is extended beyond 6 months, the layoff is treated as an “employment loss” from the date the layoff started and may violate the WARN Act unless:

  1. the extension beyond 6 months is caused by business circumstances not reasonably foreseeable at the time of the initial layoff, and
  2. notice is given at the time it becomes reasonably foreseeable that the extension beyond 6 months will be required.

Who is covered by the WARN Act?

Under the WARN Act, employers with over 100 full-time employees must provide advance written notice of at least 60 calendar days of a mass layoff or plant closure. The plant closure or mass layoff must affect at least 50 employees or 1/3 of the total workforce at the site, whichever is less.


There are certain exceptions to the WARN Act, such as if the employer can prove the action was due to:

  • Natural disaster
  • Unforeseen business circumstances
  • A faltering company

In those cases, employers must provide as much notice as reasonably possible.

Temporary Layoff or Furlough: Notice under the WARN Act

If the temporary layoff is planned to last more than 6 months, then an employer has to give notice as with the WARN Act.


If the temporary layoff unexpectedly needs to be extended longer than 6 months, then unless it meets the following conditions, it could violate the WARN Act:

  • The extension is due to unforeseeable business circumstances that a reasonable person could not have seen at the time of the layoff.
  • The employer gives notice when they realize the extension is necessary.


As an employer, the best practice is to give notice of the extension when it becomes evident. The WARN Act counts a furlough or layoff of over 6 months as a job loss from the effective date of the furlough or layoff.


If WARN Act action is brought against the employer, then the employer must prove the business circumstances were unforeseeable at the time of the decision.

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