Key Requirements at a Glance

The new law requires Washington employers with 50 or more employees (excluding part-time workers) to provide 60 days’ written notice before:

• Business closings affecting 50 or more employees at a single site
• Mass layoffs affecting 50 or more employees within any 30-day period

Notice with required information must be provided to affected employees (or their union representatives) and the Washington Employment Security Department.

How Washington’s Law Differs from Federal WARN

While the federal Worker Adjustment and Retraining Notification (WARN) Act also requires 60-day notice, Washington’s law includes several important distinctions:

Lower Thresholds

• Federal WARN: Applies to employers with 100+ employees; triggers at 50+ employees (if they constitute at least 33% of the workforce) or 500+ employees
• Washington: Applies to employers with just 50+ employees; triggers at 50+ employees regardless of percentage

Enhanced Protections

Washington’s law specifically prohibits including employees on paid family or medical leave in mass layoff orders (except in limited circumstances)—a protection not found in federal WARN.

Notice Content

Washington requires all the federal WARN notice elements plus specific information about whether the action results from relocation or outsourcing of operations.

Penalties

Violating employers may face:

• Back pay and benefits for up to 60 days per affected employee
• Civil penalties of up to $500 per day payable to the state
• Potential attorneys’ fees for prevailing employees

Critical Considerations for Business Sales

For clients selling their businesses, timing and structure matter:

1. Seller vs. Buyer Responsibility: The seller must provide notice for any layoffs occurring up to and including the sale date. The buyer assumes responsibility for post-sale layoffs.
2. Due Diligence: Buyers should carefully assess potential workforce reductions and factor 60-day notice periods into transaction timelines.
3. Exemptions May Apply: The law includes exceptions for unforeseeable business circumstances and actively seeking capital or business to avoid closure—but these require specific documentation to support.

Critical Considerations for Businesses Closing

For businesses facing permanent closure, the new law creates significant obligations:

1. 60-Day Operating Requirement: Unless an exception applies, businesses must continue operating (and paying employees) for 60 days after providing notice—even if financially distressed.
2. Financial Planning: Factor in 60 days of payroll, benefits, and operating costs when planning closure timing. This can substantially impact remaining capital.
3. Seeking Capital Exception: Businesses actively seeking financing or buyers to avoid closure may qualify for reduced notice, but must document:
   • Active efforts to obtain capital or find buyers
   • How the capital/sale would have avoided closure
   • Good faith belief that giving notice would have prevented obtaining the capital/buyer
4. Sudden Circumstances: Unforeseeable business circumstances (sudden loss of major customer, unexpected regulatory action) may excuse full notice, but the bar is high—circumstances must be “sudden, dramatic, and unexpected.”
5. Liability Continues: Even after closure, the business remains liable for back pay, benefits, and penalties. These obligations can follow into bankruptcy or against successor entities.

Practical Compliance Tips

1. Plan Early: Build potential notice periods into transaction timelines
2. Count Carefully: Remember that “single site” includes contiguous locations like business campuses
3. Document Exceptions: If claiming an exception, maintain thorough documentation as required by Employment Security Department rules
4. Consider Federal Obligations: Ensure compliance with both state and federal requirements
5. Review Workforce Data: Part-time employees (averaging less than 20 hours/week) don’t count toward the 50-employee employer threshold but may still be entitled to notice

Looking Ahead

With Washington joining the growing number of states enacting “mini-WARN” laws, multi-state employers face an increasingly complex compliance landscape. The July 27, 2025 effective date provides businesses time to review workforce planning processes and update transaction playbooks.

Business owners contemplating sales, restructurings, or other significant changes should consult with counsel early to navigate these requirements and avoid costly penalties.

This article provides general information only and does not constitute legal advice. For specific guidance on compliance with Washington’s mass layoff notice requirements, please contact our employment law team.