The Fair Warning Act of 2025, introduced as H.R. 5761 in the 119th Congress, represents a significant proposed overhaul of the federal Worker Adjustment and Retraining Notification (WARN) Act, which has remained largely unchanged since its enactment in 1988. Sponsored by Representatives Emilia Strong Sykes (D-OH), Debbie Dingell (D-MI), and Nikki Budzinski (D-IL).
The bill aims to modernize worker protections in response to evolving economic conditions, including surges in layoffs driven by automation, AI, and corporate restructuring. As of January 2026, the bill remains in the early stages, having been referred to the House Committee on Education and the Workforce, with no Republican cosponsors.
Enacted in 1988, the WARN Act requires employers to provide 60 days’ advance notice to affected employees, their representatives (e.g., unions), and certain government officials before implementing a plant closing or mass layoff. It applies to businesses with 100 or more full-time employees (or 100 employees working at least 4,000 hours per week, excluding overtime).
Key triggers include:
– – Plant Closing: The shutdown of a single site (or one or more facilities or operating units within it) resulting in employment loss for 50 or more employees during any 30-day period.
– – Mass Layoff: Employment loss at a single site during any 30-day period for 500 or more employees, or for 50-499 employees if they constitute at least 33% of the active workforce at the site.
“Employment loss” is defined as termination (other than for cause, voluntary departure, or retirement), a layoff exceeding six months, or a reduction in hours of more than 50% during each month of any six-month period. Part-time employees are generally excluded from threshold counts.
Enforcement is primarily through private lawsuits, with remedies limited to up to 60 days’ back pay and benefits for violations. There are no civil penalties, and the statute of limitations varies by state (as it borrows from analogous state laws). Exceptions exist for unforeseen business circumstances, faltering companies seeking capital, and natural disasters, allowing reduced notice if justified.
H.R. 5761 seeks to expand coverage, strengthen enforcement, and close loopholes in the WARN Act by lowering thresholds, extending notice periods, broadening definitions, and enhancing penalties.
For example the existing WARN Act applies to businesses with 100+ full-time employees or 100+ employees working 4,000+ hours/week (excluding part-time). Focuses on single entities.
The proposed law would apply to businesses with 50+ employees (including part-time) or $2M+ annual payroll. Extends liability to parents, affiliates, or contractors based on control factors (e.g., common oownership, shared policies).
These changes would align federal law more closely with state “mini-WARN” acts in places like California, New York, and Illinois, which often have lower thresholds (e.g., 50 employees) and longer notice periods (e.g., 90 days). For employers, this means earlier planning for restructurings, clearer remote work policies, and potential interactions with state laws requiring the most protective standards.
The existing 1988 version of the Federal WARN ACT can be found in 29 USC Chapter 23. Employers are advised to consult legal counsel for guidance on implementation.