Frequently Asked Questions
- Does the WARN Act apply to Puerto Rico and other territories of the United States, such as Guam?
Yes. Territories of the United States are subject to U.S. laws.
- Are universities covered under the WARN Act?
Yes. Universities are employers. In some states, school boards are separate quasi-governmental entities with certain governmental powers, such as the ability to raise revenue. Private universities are not government entities, so they are covered.
- Are hospitals covered under the WARN Act?
Unless it is a municipal hospital run as a government agency, hospitals are covered.
Exceptions to Giving Notice
- Is an economic crisis considered to be an unforeseen business circumstance?
If an employer believes their situation is the result an economic crisis, it may apply the unforeseen business circumstance exception; however, there could be a burden on the employer to prove why it could not plan 90 days in advance.
Paid Time Off to Seek Employment
- Does the WARN Act allow employees time off with pay to look for another job during the notice period?
WARN allows workers time to make appropriate arrangements for a new job or retraining. It is within the discretion of the employer to give the worker paid time off to look for another job.