Layoffs and WARN Act Rights
Main office: Marblehead, MA • Representing employees in Massachusetts and New Hampshire
Layoffs and RIFs - More Legal Protections Than Most Employees Realize
In addition to unemployment insurance, the law provides significant additional protections and benefits to those who lose employment because of a restructuring, group layoff, or reduction in force (RIF). There are numerous laws that apply to these situations, depending on factors such as company size, the number of employees affected, and whether severance is being offered.
Employers often fail to handle RIFs correctly, and those failures can create opportunities to secure a better severance package or establish liability for improper terminations. Whitney Law Group evaluates RIF situations to identify what your employer was required to do and whether they did it.
Data throughout the country shows that pay inequality exists across a wide range of industries and occupations, including professional services, healthcare, technology, and financial services, sectors that are heavily represented on the North Shore. A variety of statutes exist at the state and federal level to prevent and remedy pay discrimination.
Applicable laws include:
The WARN Act - Federal and Massachusetts Notice Requirements
Federal WARN Act
For employers with 100 or more full-time employees, the Worker Adjustment and Retraining Notification Act (WARN Act) requires 60 calendar days’ advance notice of a plant closing or mass layoff affecting 50 or more employees (or one-third of the workforce). If an employer fails to provide the required 60 days’ notice, affected employees may be entitled to up to 60 days of back pay and benefits.
Massachusetts Mini-WARN Act
Massachusetts has its own plant closing law (G.L. c. 151A §71A–71H) that in some circumstances requires notice to the Division of Career Services and the affected employees. The Massachusetts requirements differ from the federal WARN Act in coverage thresholds and notice obligations. Whitney Law Group evaluates both sets of requirements for any Massachusetts RIF.
New Hampshire
New Hampshire does not have a state-level WARN Act. The federal WARN Act applies to qualifying NH employers.
Severance and the OWBPA in Group Layoffs
If a severance package is offered in connection with a group layoff, the law imposes specific requirements on the agreement:
45-day review period
In a group layoff where multiple employees are being asked to sign, the Older Workers Benefit Protection Act (OWBPA) requires 45 days to review the agreement (extended from the standard 21-day period for individual separations).
Disclosure of the decisional unit
The employer must disclose the job titles and ages of all employees who were selected and not selected for the RIF within the same decisional unit, a requirement designed to let employees identify potential age discrimination patterns.
7-day revocation period
Even after signing, employees 40 and older have 7 days to revoke the agreement.
Many employers fail to satisfy these requirements in group layoffs, which can render the waiver of ADEA claims ineffective, giving affected employees additional leverage or legal recourse. Whitney Law Group reviews RIF severance agreements for OWBPA compliance as a standard step.
Frequently Asked Questions - Layoffs and WARN Act
Q: My employer gave me only two weeks’ notice before my last day in a group layoff. Do I have a WARN Act claim?
Potentially, if your employer had 100 or more full-time employees and the layoff affected 50 or more employees (or one-third of the workforce). If the federal WARN Act applies, your employer was required to provide 60 days’ advance written notice. If they failed to do so, you may be entitled to up to 60 days of back pay and benefits for each day of notice that was owed but not given. Whitney Law Group evaluates WARN Act applicability quickly and advises employees on whether a claim is available.
Q: I’m 58 and the only person let go in my group. Is that age discrimination disguised as a RIF?
It may be. RIFs are the most common mechanism for disguising age discrimination, and the law recognizes this. Key questions: Were others in your group significantly younger? Were your responsibilities redistributed to younger employees? Did the employer’s explanation hold up, or was your position actually kept, just restructured? Did the employer provide the OWBPA-required disclosure of all employees selected and not selected for the RIF with their ages? Whitney Law Group analyzes RIF terminations with close attention to age discrimination patterns.
Q: My employer offered a severance in the RIF but said I only have 21 days to sign. Is that right for a group layoff?
No. In a group layoff, where multiple employees are simultaneously being asked to sign separation agreements, the OWBPA extends the review period from 21 to 45 days. If your employer is offering only 21 days in a group layoff, the ADEA waiver in the agreement may not be effective, which could affect your ability to bring an age discrimination claim even if you sign. This is one of the most commonly missed RIF requirements. Whitney Law Group evaluates OWBPA compliance in every group layoff severance review.
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Serving Marblehead, MA and the North Shore
Whitney Law Group’s main office is at 11 State Street in Marblehead, MA, the firm’s home since its founding in 2017. We serve clients throughout Essex County and the North Shore, including Swampscott, Salem, Beverly, Peabody, Danvers, Gloucester, Newburyport, and Marblehead. Virtual consultations available statewide.