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WARN Act Texas: What You Need to Know About Layoff Notifications and Your Rights

If your employer announces a sudden layoff or plant closure, you may be left wondering whether it was even legal—especially if you received little or no notice. In some cases, it might not be. That’s where the WARN Act comes in.

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires certain employers to give workers advance notice before large-scale layoffs or closures. And while Texas doesn’t have its own WARN Act, the federal law still applies to companies operating here.

In this blog, we’ll break down what the WARN Act means in Texas, when it applies, and what you can do if your employer fails to follow it.

What Is the WARN Act?

The Worker Adjustment and Retraining Notification Act is a federal law passed in 1988 that requires covered employers to provide 60 days’ written notice before:

• A mass layoff, or
  
  
• A plant closure
  
  

The goal of the WARN Act is to give employees time to prepare, seek new employment, or pursue training opportunities before suddenly losing their income.

Does the WARN Act Apply in Texas?

Yes. Although Texas does not have a state-level version of the WARN Act, the federal law still applies to employers and employees here.

That means if a qualifying company in Texas fails to give proper notice, affected workers may be entitled to back pay, benefits, and legal recourse.

Which Employers Must Comply With the WARN Act?

The WARN Act applies to private-sector employers that meet all of the following:

• Employ 100 or more full-time employees, OR
  
  
• Employ 100+ workers who work a combined 4,000+ hours per week (excluding overtime)
  
  
• Are a for-profit business, non-profit, or public/quasi-public entity operating in a commercial capacity
  
  

Government agencies and small businesses with fewer than 100 employees are generally not covered.

When Is an Employer Required to Give Notice?

Your employer must provide 60 days’ written notice before:

✅ Plant Closures

• When a facility shuts down permanently or temporarily, affecting 50+ full-time employees at a single site
  
  

✅ Mass Layoffs

• When at least 500 full-time employees are laid off, OR
  
  
• When 50–499 employees are laid off and they represent at least 33% of the employer’s active workforce at a single site
  
  

The notice must be given to:

• Affected employees (or their union representatives)
  
  
• The Texas Workforce Commission (TWC)
  
  
• The chief elected local official (e.g., city or county government)
  
  

Are There Exceptions to the WARN Act Notice Requirement?

Yes. Employers may be exempt from the 60-day notice if:

• The layoff is caused by unforeseeable business circumstances (e.g., sudden loss of a major client)
  
  
• The closure results from a natural disaster
  
  
• The company is actively seeking new capital or business, and giving notice would ruin the deal
  
  
• The layoffs involve temporary employees or strikers
  
  

However, even in these situations, employers must still provide as much notice as possible and explain the reason for the delay in writing.

What Happens If an Employer Violates the WARN Act in Texas?

If your employer fails to provide the required notice, you may be entitled to:

• Back pay for each day of violation (up to 60 days)
  
  
• Lost benefits, including health insurance and retirement contributions
  
  
• Attorney’s fees and legal costs
  
  

Employers may also face civil penalties and be required to pay these damages to each affected worker.

📌 Lawsuits for WARN Act violations can be brought individually or as part of a class action.

Examples of WARN Act Situations in Texas

🏭 Plant Closure in Houston

A manufacturing company with 120 employees closes its factory with only 2 weeks’ notice. This qualifies under the WARN Act, and affected employees may be owed 6 weeks of back pay.

🏢 Tech Layoffs in Austin

A software firm lays off 250 workers—50% of its workforce—without notice. The WARN Act likely applies, and employees may have a strong claim.

🏨 Hotel Chain Files for Bankruptcy

A hotel company closes several locations across Texas. If they didn’t give advance notice and weren’t legally exempt, employees may be eligible for WARN Act damages.

How to Know If You Have a WARN Act Claim

Ask yourself:

• Did your employer have 100 or more employees?
  
  
• Were 50 or more workers laid off at one location?
  
  
• Did you get at least 60 days’ written notice?
  
  
• Was the layoff sudden, and without explanation?
  
  
• Were you offered any pay in lieu of notice?
  
  

If the answer to these questions raises red flags, it’s time to speak with an employment lawyer.

How a Texas Employment Lawyer Can Help

A WARN Act lawyer can:

• Evaluate your layoff and determine if WARN Act applies
  
  
• Calculate how much severance, back pay, or benefits you may be owed
  
  
• File a lawsuit or negotiate a settlement with your employer
  
  
• Protect your rights in individual or class action lawsuits
  
  

📞 At The Lange Firm, we help laid-off employees across Texas recover the pay and benefits they’re legally entitled to.

How The Lange Firm Helps Texas Workers Affected by Layoffs

At The Lange Firm, we represent employees across Texas who:

• Were laid off without proper notice
  
  
• Are unsure whether WARN Act protections apply
  
  
• Need help negotiating severance or filing claims
  
  
• Are part of group layoffs or class action disputes
  
  

Whether you’re a tech worker in Austin, an energy sector employee in Houston, or a plant worker in Dallas, we’re here to guide you.

📞 Contact us today for a free consultation about your WARN Act rights and how to protect your financial future.

Final Thoughts

Sudden layoffs can leave you feeling shocked and powerless—but the law may be on your side. If your employer failed to follow WARN Act rules, you may be entitled to significant compensation.

✅ Don’t sign away your rights without understanding them. Get legal help and find out whether your employer broke the law.