Washington's Mini-WARN Act Goes into Effect on July 27, 2025

Washington state recently enacted the Securing Timely Notification and Benefits for Laid-Off Employees Act (Senate Bill 5525), which takes effect July 27, 2025. This new "mini" version of the federal Worker Adjustment and Retraining Notification (WARN) Act imposes significant obligations on employers with 50 or more full-time employees in the state who are planning shutdowns or mass layoffs. Employers should review their workforce management and notification procedures to ensure compliance with these new requirements.

Employment Terminations Triggering the Act

Under the new statute, mass layoffs and business closings will trigger the notice requirements:

• A "mass layoff" is defined as a reduction in force that is not the result of a business closing and results in the loss of 50 or more employees (excluding part-time employees) in a 30-day period.
• A "business closing" is defined as the permanent or temporary shutdown of a single site of employment or one or more facilities or operating units that will result in the loss of 50 or more employees (excluding part-time employees).

Unlike the federal WARN Act, a mass layoff under Washington's new statute is not limited to employees at a single site of employment.

Employer Notice Obligations

Under the new law, covered employers must provide at least 60 days' written notice before ordering a closing or mass layoff that will result in employment loss for 50 or more employees at a single site of employment. Notice must be given to the Washington Employment Security Department (ESD) and affected employees (or their bargaining representatives) and must include specific information such as the nature and timing of the layoff or closure, job titles and names of affected employees, and whether the action is permanent or temporary. The law closely tracks, but expands upon, the federal WARN Act's requirements, including additional state-specific notice elements. For example, employers under Washington's mini-WARN Act must include in the notice whether the closure or layoff is the result of the relocation or contracting out the employee's position.

Exceptions and Special Circumstances

There are limited exceptions to the 60-day notice requirement, including unforeseeable business circumstances, natural disasters and certain construction projects. If an exception applies for only part of the 60-day window, notice must be provided as soon as the exception no longer applies. Employers must maintain documentation to support any claimed exception as required by forthcoming rules from ESD.

Employees on Paid Leave

One of the key provisions of the new law that significantly differs from the federal WARN Act is its interaction with paid leave. The new law prohibits employers from including employees on Washington Paid Family and Medical Leave in a mass layoff.

Penalties for Noncompliance

Employers who fail to provide the required notice may be liable to each aggrieved employee for up to 60 days of back pay and benefits, calculated at the higher of the employee's average or final rate of compensation. Civil penalties of up to $500 per day may also be imposed for failure to notify ESD, unless the employer makes full payments to affected employees within three weeks of the layoff or closure. The law also provides for a private right of action, which entitles prevailing employees to attorneys' fees.

Action Steps for Employers

Employers should promptly review their reduction-in-force procedures to ensure that any planned workforce reductions after July 27, 2025, comply with both federal and Washington state obligations.

Please contact the author or your Holland & Knight relationship attorney if you have questions about this new requirement.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.