Washington State Enacts ‘Mini-WARN’ Act for Notice of Site Closings

Washington is the latest state to enact a “mini-WARN” Act that will require employers with 50 or more full-time employees to provide at least 60 days’ notice to the state as well as any union or employees affected by a business site closing or mass reduction in force.

On April 27, the Washington state Legislature delivered Senate Bill 5525 to Gov. Bob Ferguson’s desk for signature. Ferguson signed the bill into law on May 13. The bill, titled the “Securing Timely Notification and Benefits for Laid-Off Employees Act,” will provide employee protections in the context of business closings and mass reductions in force (RIF), similar to the federal Worker Adjustment and Retraining Notification (WARN) Act.

The legislation will require most covered employers to provide notice and information beyond what is required by the WARN Act before closing a business location or undertaking a “mass layoff” and protect employees from being included in a reduction in force while they are taking Washington’s paid family or medical leave. The bill will also grant the Washington State Employment Security Department (ESD), aggrieved employees, or the employees’ union bargaining representative a private right of action to enforce.

‘WARN-Plus’ Notice

SB 5525 tracks the federal WARN Act and will prohibit employers with 50 or more full-time employees from ordering the closing of a business location or a mass layoff without providing written notice of such action to the ESD and the affected employees or their union at least 60 days in advance.  

The bill also will require employers to comply with the requirements of the federal WARN Act and include in their notice:

• The name and address of the impacted site and a company contact person.
• Whether the action is permanent or temporary (and, if temporary, whether it will last more than or less than three months).
• The anticipated date of the first employment loss and a schedule of losses.
• The impacted job titles and the names and addresses of employees in those jobs.
• Whether the action “is the result of, or will result in, the relocation or contracting out of the employers’ operations or employees’ positions.”

Employers will be required to provide additional notice if the closure or RIF goes beyond the scheduled dates in the original notice.

الاستثناءات

The bill will excuse notice in certain circumstances, including if:

• The employer is actively seeking capital or business at the time the notice is required that could enable the employer to avoid a business closing or mass reduction, and the employer reasonably and in good faith believes that providing notice would prevent it from obtaining the capital or business.
• The business closing or reduction in force is based on circumstances not reasonably foreseeable at the time the notice would have been required.
• The business closing or reduction in force is due to a natural disaster, such as a flood, earthquake, or tornado.
• The mass reduction in force is at certain construction projects for which the employer informed the affected employees that their job was limited to the duration of a particular portion of the project or all affected employees are on a union referral or dispatch system on a multiemployer construction project.

Paid Family and Medical Leave Protection

Unless notification is excused, employers will not be permitted to include in a mass reduction in force any employee currently taking paid family or medical leave under the Washington Paid Family and Medical Leave law.

Damages, Penalties, and Right of Action

Under SB 5525, employers that fail to provide the required notice to each aggrieved employee will be liable for various damages including back pay (calculated as the final rate of compensation or the average regular rate over their last three years, whichever is higher) to each aggrieved employee for each day of violation, up to 60 days.

In addition, damages will also include “the value of the cost of any benefits to which the employee would have been entitled had their employment not been lost, including the cost of any medical expenses incurred by the employee that would have been covered under an employee benefit plan.”

However, employers will get credit for wage payments during the violation period to the employee, for voluntary and unconditional payments, and for payments to third parties, such as health insurance premiums or contributions to a defined contribution pension plan.

Employers that fail to provide requisite notice to the ESD will also face civil penalties for each day of the violation, not to exceed $500 per day.

Also, SB 5525 will allow the ESD, aggrieved employees, or the aggrieved employees’ bargaining representative to file a civil lawsuit on behalf of the aggrieved employees, other persons similarly situated, or both within three years of alleged violations. Courts will be able to award reasonable attorney fees and costs to prevailing parties. Courts will also be able to reduce a civil penalty if they find the employer conducted a reasonable investigation in good faith and had reasonable grounds to believe its conduct was not a violation.

الخطوات التالية

SB 5525 will go into effect on July 26, or 90 days after the close of the legislative session.

Sherry L. Talton is an attorney with Ogletree Deakins in Houston and Seattle. Zachary V. Zagger is senior marketing counsel with Ogletree Deakins in New York City. © 2025 Ogletree Deakins. All rights reserved. Reposted with permission.