Illinois WARN Act

Illinois WARN Act: complete guide

Illinois has its own mini-WARN law with a lower employee threshold than federal WARN. Employers with 75 or more full-time employees must give 60 days notice before covered layoffs, even if they are not covered by federal WARN.

IllinoisIL WARN820 ILCS 65Mass Layoff

75

Full-time employees

60 days

Advance notice required

None

Mandatory severance

OverviewDoes IL WARN apply?Thresholds and triggersExceptionsNotice requirementsIL WARN vs. Federal WARNPenalties and calculationCommon mistakesFAQ

What is the Illinois WARN Act?

The Illinois WARN Act (820 ILCS 65) is a state-level plant closing and mass layoff notification law that applies to Illinois employers with 75 or more full-time employees. It requires 60 days advance written notice before a covered plant closing or mass layoff, matching federal WARN, but with a lower employer threshold and lower mass layoff trigger.

The practical consequence: employers with 75 to 99 full-time employees are not covered by federal WARN but are covered by the Illinois WARN Act. If you operate in Illinois and have at least 75 full-time employees anywhere in the company, IL WARN applies to any qualifying layoff in the state.

Both laws can apply simultaneously

If your company has 100 or more full-time employees, both federal WARN and the Illinois WARN Act apply to Illinois-based layoffs. You must comply with whichever law is more stringent on a given requirement. In practice, the laws largely overlap: both require 60-day notice to the same recipients. But IL WARN has a broader mass layoff trigger that federal WARN does not match.

Does IL WARN apply to your layoff?

Work through these questions in order. If you answer yes to each, IL WARN notice is required.

1

Do you have 75 or more full-time employees?

Count all full-time employees nationwide, not just in Illinois. Part-time employees (fewer than 20 hours/week or fewer than 6 months in the last 12 months) do not count toward the 75-employee threshold.

Yes: Continue to step 2
No: IL WARN does not apply.
2

Is the action a plant closing or mass layoff at an Illinois site?

A plant closing is a permanent or temporary shutdown of a single site of employment for 6 months or more, resulting in employment loss for 25 or more full-time employees. A mass layoff is a reduction in force that is not a plant closing.

Yes: Continue to step 3
No: IL WARN does not apply to this action.
3

Does the layoff meet the mass layoff threshold?

IL WARN requires notice if the layoff results in employment loss for: (a) 25 or more full-time employees who represent at least 33% of the full-time workforce at the site, OR (b) 250 or more full-time employees regardless of percentage.

Yes: Continue to step 4
No: IL WARN does not apply unless a plant closing threshold is met.
4

Does an exception apply?

Three exceptions exist: faltering company (plant closings only), unforeseeable business circumstances, and natural disaster. If one applies, reduced notice may be permissible. You must still provide as much notice as practicable and explain the exception in the notice itself.

Yes: Reduced notice may be permissible. See the Exceptions section.
No: Full 60-day notice is required.

Thresholds and triggers

The Illinois WARN Act uses different thresholds for plant closings and mass layoffs. Both require 60 days notice. The difference is how many employees must be affected.

What counts as an "employment loss"

Both thresholds below count only employees who experience an "employment loss." Under WARN, employment loss means any of the following:

  • Termination, other than a discharge for cause, voluntary departure, or retirement
  • A layoff exceeding 6 months
  • A reduction in hours of more than 50% during each month of any 6-month period

Employees who are offered a transfer to a different site within 6 months generally do not count as an employment loss if they accept.

Employer coverage threshold

IL WARN applies to employers with 75 or more full-time employees. Count employees company-wide, not just in Illinois.

Count toward 75

  • Full-time employees (20+ hours/week)
  • Employees on paid leave
  • Employees on temporary layoff with recall rights

Do not count

  • Part-time employees (under 20 hours/week)
  • Employees with fewer than 6 months tenure
  • Independent contractors

Plant closing trigger

A plant closing is a permanent or temporary shutdown of a single site of employment lasting 6 months or more, if the shutdown results in employment loss for:

25 or more full-time employees at the affected site

A partial closing (shutting down one department or floor while keeping others open) counts as a plant closing if 25 or more full-time employees lose employment as a result.

Mass layoff trigger

A mass layoff (not a plant closing) requires notice if either of these thresholds is met at a single site of employment:

Option A

25+ employees

who represent at least 33% of the full-time workforce at the site

Option B

250+ employees

regardless of what percentage of the workforce they represent

Lower than federal WARN

Federal WARN requires 50 employees for the percentage-based trigger. Illinois uses 25. A site with 75 employees could trigger IL WARN if 25 of them (33%) are laid off, while federal WARN would not apply.

90-day aggregation rule

Like federal WARN, Illinois aggregates employment losses within a 90-day rolling window. Layoffs that each fall below the threshold individually are combined and treated as a single event if they occur within 90 days of each other, unless the employer can demonstrate that the separate actions were due to separate, unrelated causes. Avoid staggered layoffs intended to stay under the threshold. Courts scrutinize the intent.

Exceptions to the 60-day requirement

The Illinois WARN Act mirrors the three federal WARN exceptions. All three reduce the required notice period. They do not eliminate it. The employer must still give as much notice as practicable and explain the exception in the notice itself.

Faltering company

Plant closings only

The employer was actively seeking capital or business at the time 60-day notice would have been required, and reasonably believed in good faith that giving notice would have precluded obtaining that capital or business.

Limits

  • Applies only to plant closings, not mass layoffs.
  • The employer must have been actively seeking capital, not merely hoping for it.
  • The notice must explain that the faltering company exception is being invoked.

Unforeseeable business circumstances

Plant closings and mass layoffs

The closing or layoff was caused by business circumstances that were not reasonably foreseeable at the time 60-day notice would have been required, such as a sudden, dramatic, and unexpected action by a major customer.

Limits

  • The circumstances must be sudden and unexpected, not merely a worsening trend the employer was aware of.
  • Loss of a major customer is a classic example; a predictable revenue decline is not.
  • Notice must be given as soon as practicable and must describe the circumstances.

Natural disaster

Plant closings and mass layoffs

The closing or layoff was a direct result of a natural disaster: flood, earthquake, drought, storm, tidal wave, or similar natural disaster.

Limits

  • The layoff must be a direct result of the disaster, not downstream economic effects.
  • Even with this exception, the employer must provide notice as soon as practicable.

Notice requirements

WARN notice must be written. Illinois requires the same recipients as federal WARN, with state agency notice going to the Illinois Department of Commerce and Economic Opportunity (DCEO).

Who must receive notice

  • Affected employees

    Each full-time employee who will experience an employment loss. If the employee is represented by a union, notice goes to the chief elected officer of the union local.

  • Illinois DCEO

    The Illinois Department of Commerce and Economic Opportunity, the state dislocated worker unit. Submit via the DCEO Rapid Response portal or by mail to the Chicago office.

  • Chief elected local official

    The mayor, county executive, or equivalent of the unit of local government where the layoff or closing will occur.

Required content of the notice

  • Name and address of the employment site where the action will occur

  • Name and telephone number of the company official to contact for further information

  • Statement of whether the planned action is permanent or temporary, and if a plant closing, whether the entire plant is to be closed

  • Expected date of the first separation and the anticipated schedule of separations

  • Job titles of positions to be affected and names of workers holding those positions

  • Statement of whether bumping rights exist under any applicable collective bargaining agreement

Notice must be specific to be valid

A general announcement that layoffs are coming does not satisfy WARN. The notice must identify the affected employees by position, state the expected date of the first separation, and specify the site. Broad internal communications or press releases do not substitute for written WARN notice delivered to each required recipient.

Illinois WARN vs. federal WARN

IL WARN is broader in two ways: lower employer threshold and lower mass layoff trigger. The table shows where each law differs. Rows highlighted in blue are where Illinois is more protective.

Requirement

IL WARN

Federal WARN

  • Employer threshold

    75 full-time employees

    100 full-time employees

  • Notice period

    60 days

    60 days

  • Plant closing trigger

    25 full-time employees

    50 full-time employees

  • Mass layoff (% trigger)

    25 employees + 33% of workforce

    50 employees + 33% of workforce

  • Mass layoff (absolute trigger)

    250 full-time employees

    500 full-time employees

  • Mandatory severance

    No

    No

  • Back pay liability

    Up to 60 days

    Up to 60 days

  • Civil penalty per day

    Up to $500

    Up to $500

  • Faltering company exception

    Yes (plant closings only)

    Yes (plant closings only)

  • State agency notice

    Illinois DCEO

    State dislocated worker unit

IL WARN differences highlighted in blue. Where IL WARN is more protective, it governs for Illinois-based employees regardless of whether federal WARN also applies.

Penalties for violation

Unlike New Jersey's WARN Act, Illinois does not require mandatory severance. The penalty structure mirrors federal WARN: back pay and benefits for the violation period, plus a civil penalty.

Per-employee liability

Back pay at the employee's regular rate, plus the value of benefits (including medical expenses that would have been covered), for each day of the violation, up to 60 days total per employee.

Civil penalty

Up to $500 per day for each day of violation. This penalty can be offset if the employer makes voluntary payments to affected employees during the violation period.

How liability is calculated

If an employer gives 30 days notice when 60 days was required, the violation period is 30 days. For an employee earning $1,500/week with $500/month in benefits:

Back pay: 30 days × ($1,500 / 5 days) = $9,000

Benefits: 30 days × ($500 / 30 days) = $500

Total per employee: $9,500

Multiply by the number of affected employees. For a 100-person layoff with 30 days of missing notice, total back pay exposure can exceed $900,000 before civil penalties.

Common mistakes

Assuming federal WARN coverage means IL WARN compliance

Federal WARN compliance satisfies IL WARN notice requirements for employers with 100+ employees, because the federal notice goes to the same recipients. But the mass layoff trigger is lower under IL WARN. A layoff that does not trigger federal WARN may still trigger IL WARN.

Not counting employees toward the 75-employee threshold

The employer threshold is company-wide, not site-specific. An employer with 40 employees in Chicago and 40 in Springfield has 80 full-time employees and is covered by IL WARN, even if neither site alone exceeds 75.

Forgetting to notify the Illinois DCEO

Employers frequently remember to notify employees and the local government but miss the state agency notice. All three recipients are required. DCEO notice must include the layoff details specified by the statute.

Treating the faltering company exception as a general financial hardship excuse

The exception requires active, specific capital-seeking efforts at the time notice was due, not a general financial struggle. An employer in a declining business that eventually collapses does not qualify unless it was actively pursuing identified financing or customers.

Ignoring the 90-day aggregation rule when phasing layoffs

Phasing a 300-person layoff into three separate rounds of 100 within 90 days does not avoid WARN. The events are aggregated. Counsel should review any multi-phase reduction before the first notice goes out.

Issuing notice to union representatives but not to individual employees

When employees are unionized, WARN notice goes to the chief elected officer of the union local, not to individual employees. But if any affected employees are not covered by the collective bargaining agreement, they must receive individual written notice.

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Frequently asked questions

What is the Illinois WARN Act?

The Illinois WARN Act (820 ILCS 65) requires employers with 75 or more full-time employees to provide 60 days advance written notice before a plant closing or mass layoff. It applies to layoffs affecting 25 or more full-time employees when those employees represent at least one-third of the full-time workforce, or 250 or more full-time employees regardless of percentage.

How does the Illinois WARN Act differ from federal WARN?

The Illinois WARN Act has a lower employee threshold (75 vs. 100 under federal WARN) and a lower mass layoff trigger (25 employees who represent 1/3 of the workforce, vs. 50 employees under federal WARN). The notice period is the same (60 days). Illinois does not require mandatory severance. Violations result in back pay and benefits liability for up to 60 days, the same as federal WARN. Employers covered by federal WARN are always covered by IL WARN, but smaller employers may be covered only by IL WARN.

Does Illinois WARN apply to employers with fewer than 100 employees?

Yes. The Illinois WARN Act applies to employers with 75 or more full-time employees, which is lower than the 100-employee federal WARN requirement. An employer with 80 full-time employees is not covered by federal WARN but is covered by Illinois WARN and must comply with the 60-day notice requirement.

What is the penalty for violating the Illinois WARN Act?

An employer that violates the Illinois WARN Act is liable to each affected employee for back pay and the cost of benefits (including medical expenses that would have been covered) for each day of the violation period, up to 60 days. The employer is also subject to a civil penalty of up to $500 per day of violation. Employers may reduce their liability by making voluntary payments to employees during the violation period.

Does the Illinois WARN Act have a faltering company exception?

Yes. Like federal WARN, the Illinois WARN Act includes a faltering company exception. An employer may give less than 60 days notice if it is actively seeking capital or business that would avoid or postpone the shutdown and believes in good faith that notice would preclude its ability to obtain that capital or business. The exception applies only to plant closings, not mass layoffs.

Who must receive WARN notice in Illinois?

Under both federal and Illinois WARN, the employer must provide written notice to: (1) each affected employee or their representative (union); (2) the Illinois Department of Commerce and Economic Opportunity (DCEO); and (3) the chief elected official of the unit of local government where the layoff will occur. Notice to the state agency must include specific information about the layoff, including the number of affected employees and the expected date of separation.

People Plan

IL WARN coverage calculated automatically

People Plan determines WARN coverage under both federal and Illinois law from your employee data, calculates the notice period and recipients, and generates the required written notices, so your legal team reviews rather than drafts.

Legal disclaimer

This guide is provided for general informational purposes and does not constitute legal advice. WARN Act analysis is fact-specific and depends on exact headcounts, site definitions, and timing. Always have employment counsel review WARN obligations before issuing or declining to issue notice. People Plan is not a law firm.