RIF Compliance

Texas WARN Act: No State Law, But Federal WARN Still Applies

Texas is one of the few large states with no state-level WARN law. Federal WARN Act obligations still apply to Texas employers and violations carry real penalties.

TexasFederal WARNNo State Law

None

State WARN law

60 days

Federal notice required

100+

Employees to trigger

Does Texas have a WARN Act?Federal WARN in TexasThresholds and triggersDo you need to file?Who receives noticeTexas vs. California comparisonExceptionsPenaltiesTexas industry notesCommon mistakesFAQ

Does Texas have a WARN Act?

No. Texas has not enacted its own plant closing or mass layoff notification law. This is notably different from neighboring states and makes Texas one of the largest employment states in the country with no state WARN equivalent.

The federal WARN Act (29 U.S.C. 2101) applies fully to Texas employers that meet the federal thresholds. There is no separate Texas statute, no separate state agency filing beyond what federal WARN requires, and no additional Texas-specific notice content required. But federal WARN is not optional.

Regional context

Texas is not unusual in its region. Louisiana, Oklahoma, Arkansas, and New Mexico (Louisiana, Oklahoma, Arkansas, and New Mexico all have no state WARN law) also have no state plant closing or mass layoff notice law. Employers with multi-state operations in the South and Southwest are subject to federal WARN only, unless they have locations in states like California, New York, New Jersey, or Illinois.

Federal WARN still applies

Many Texas employers assume no state law means no notice obligation. That is incorrect. Federal WARN requires 60-day notice for covered plant closings and mass layoffs. Violations expose employers to back pay liability, benefits liability, and civil penalties.

Federal WARN in Texas

Any Texas employer that meets the federal WARN coverage threshold is subject to the full federal WARN Act. The law operates in Texas exactly as it does in any other state without its own WARN statute.

Under federal WARN, employers must send written notice to three recipients: affected employees (or their union representative), the Texas Workforce Commission (TWC), and the chief elected official of the local government where the layoff occurs. The TWC is the designated state dislocated worker unit for federal WARN notices in Texas.

Federal WARN penalties in Texas

  • Back pay

    Up to 60 days wages per affected employee who did not receive adequate notice.

  • Benefits liability

    Cost of medical expenses incurred during the violation period that would have been covered under the employer plan.

  • Civil penalty

    $500 per day of violation to the local government unit, capped at 60 days ($30,000 maximum).

  • No government enforcement

    The government does not bring WARN actions. Only affected employees and unions have a private right of action, filed in U.S. District Court.

Thresholds and triggers

Federal WARN uses separate thresholds for employer coverage, plant closings, and mass layoffs. All counts are per single site of employment unless noted.

Employer coverage threshold

100+ full-time employees

Employers with 100 or more full-time employees nationwide, OR 100 or more employees (full- and part-time) working a combined 4,000 or more hours per week.

Plant closing trigger

50+ employees at a single site

A permanent or temporary shutdown of a single site of employment resulting in employment loss for 50 or more employees (excluding part-time workers under 20 hrs/week).

Mass layoff trigger (absolute)

500+ employees at a single site

A reduction in force that is not a plant closing, affecting 500 or more employees at a single site regardless of what percentage of the workforce they represent.

Mass layoff trigger (percentage)

50-499 employees + 33% of workforce

A reduction affecting 50 to 499 employees at a single site, if those employees represent at least 33% of the full-time workforce at that site.

Temporary layoffs

Covered if 6+ months

A temporary layoff that runs longer than 6 months is treated as a permanent employment loss under WARN and can trigger notice obligations retroactively.

Work hour reductions

Covered if 50%+ for 6+ months

A reduction of more than 50% in hours of work during each month of any 6-month period constitutes an employment loss.

Part-time workers: threshold vs. notice

Part-time workers (fewer than 20 hours per week, or fewer than 6 months tenure) do not count toward the trigger thresholds. But they are still entitled to receive WARN notice if they are among the affected employees. Failing to send them notice is a separate violation.

Remote workers and Texas headcount

Remote workers based in Texas generally count toward the employer threshold if the company has 100 or more total full-time employees. For site-level triggers (plant closing, mass layoff), the DOL's position is that remote workers are counted at the location they report to. Workers with no fixed reporting site (fully remote with no designated office) may be aggregated at the employer's principal place of business. Texas tech companies with distributed workforces should confirm which site each remote employee is assigned to before running a WARN threshold analysis.

Do you need to file WARN in Texas?

Work through these steps in order. Step out when the answer is no.

1

Does your company have 100 or more full-time employees?

Count all full-time employees nationwide. Part-time employees (under 20 hours/week or under 6 months tenure) generally do not count toward the 100-employee employer threshold.

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

Will 50 or more employees at a single Texas site lose their jobs?

Employment loss includes termination, a layoff expected to last 6 or more months, or a reduction to under half of normal hours for 6 or more months. If fewer than 50 employees are affected at any single site, this may not be a plant closing.

Yes: This may be a plant closing. Continue to step 4
No: Check the mass layoff threshold in step 3
3

Is this a mass layoff (500+ employees, OR 50-499 representing 33%+ of the workforce)?

A mass layoff is a reduction in force at a single site that meets either the absolute threshold (500 employees) or the percentage threshold (50 to 499 employees who are at least 33% of the full-time workforce at that site).

Yes: WARN notice is required. Continue to step 4
No: Federal WARN may not apply to this action.
4

Will this happen within the next 60 days?

The 60-day notice period runs from the date notice is given to the date of the first separation. If your layoff date is more than 60 days out, you have time. Track the window carefully.

Yes: Notice is due now. Begin the WARN filing process.
No: You have time. Set a deadline to give notice before the 60-day window closes.
5

Does an exception apply (faltering company, unforeseeable business circumstances, or natural disaster)?

All three federal WARN exceptions apply in Texas. They reduce, but do not eliminate, the notice obligation. Even with an exception, you must give as much notice as practicable and document the basis in writing.

Yes: Exceptions are narrow. Document carefully and give as much notice as possible.
No: Full 60-day notice to all three required recipients is required.
Use the WARN Act calculator

Who must receive WARN notice in Texas

Federal WARN requires written notice to three recipients. All three must receive notice simultaneously. Sending to employees without notifying TWC is a violation.

1

Affected employees (or their union representative)

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 rather than directly to each worker. Notice must include the expected date of separation, whether the action is temporary or permanent, and bumping rights if any exist under a collective bargaining agreement.

2

Texas Workforce Commission (TWC)

The TWC is the designated state dislocated worker unit for federal WARN notices in Texas. Submit notice to the TWC Rapid Response Unit at twc.texas.gov/businesses/warn-act-notices. TWC uses the notice to coordinate reemployment services for affected workers.

3

Chief elected official of the local government

The mayor, county judge, or equivalent elected official for the unit of local government where the layoff or plant closing occurs. This is the official who represents the jurisdiction where the affected site is located.

Texas vs. California: WARN obligations compared

California is the most common state where Texas-based employers discover additional WARN obligations. If your company has a California site, Cal-WARN coverage begins at 75 employees, 25 fewer than federal WARN. The table below shows what additional obligations you would face with California operations.

Requirement

Texas (Federal WARN)

California (Cal-WARN + Federal)

  • Employer threshold

    100 full-time employees

    75 full-time employees

  • Plant closing trigger

    50 employees at site

    50 employees at site

  • Mass layoff trigger

    500, or 50-499 + 33% of workforce

    50 employees (no percentage trigger)

  • Notice period

    60 days

    60 days

  • Part-time workers

    Excluded from threshold count

    Included in threshold count

  • Financial distress exception

    Available

    Not available

  • Mandatory severance

    None

    None

  • State agency notice

    Texas Workforce Commission

    California EDD

Cal-WARN applies separately to each California site. Multi-state employers must analyze Texas and California sites independently under their respective governing laws.

WARN Act exceptions

Three federal WARN exceptions apply to Texas employers. All three reduce the required notice period. None eliminate it. Courts apply all three narrowly.

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 prevented 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 a turnaround.
  • Courts apply this exception strictly. Document the active pursuit of capital with contemporaneous records.

Unforeseeable business circumstances (UFBC)

Plant closings and mass layoffs

The closing or layoff was caused by business circumstances that were not reasonably foreseeable when 60-day notice would have been required: a sudden, dramatic, and unexpected action by a major customer or outside force.

Limits

  • The circumstances must be sudden and unexpected, not a worsening trend the employer was tracking.
  • A predictable business downturn or gradual revenue decline does not qualify.
  • Loss of a major contract can qualify if truly unforeseeable at the notice deadline.

Natural disaster

Plant closings and mass layoffs

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

Limits

  • The layoff must be a direct result of the disaster itself, not downstream economic effects.
  • General economic conditions caused or worsened by a disaster do not qualify.
  • Notice must still be given as soon as practicable even when the exception applies.

Exceptions reduce notice, they do not eliminate it

Even when an exception applies, employers must give as much notice as practicable and explain the basis for shortened notice in writing within the notice itself. Relying on an exception without documentation exposes the employer to the same penalties as giving no notice at all.

Penalties for WARN Act violations in Texas

Federal WARN penalties apply in full to Texas employers. The exposure compounds quickly for large layoffs.

Back pay per employee

Up to 60 days wages at the employee's regular rate for each day of the violation period. Reduced by any voluntary pay the employer made to the employee during that period.

Benefits liability

Cost of medical expenses incurred by the employee that would have been covered under the employer's plan during the violation period. This includes out-of-pocket costs the employee paid.

Civil penalty

$500 per day of violation, payable to the unit of local government. Capped at 60 days, so maximum civil penalty exposure is $30,000. Offset if the employer pays affected employees within three weeks of the layoff.

Who can sue

Only affected employees and their unions have a private right of action. The federal government does not bring WARN enforcement actions. Local governments may seek civil penalties directly.

Texas courts have full federal WARN jurisdiction

Claims are filed in U.S. District Court under federal question jurisdiction. Texas state courts do not hear WARN Act claims. The Western, Southern, Northern, and Eastern Districts of Texas all have jurisdiction for claims arising from layoffs in their respective regions.

Texas industry considerations

Oil and gas

Texas is the largest oil-producing state. Workforce reductions from rig shutdowns, field service consolidations, or refinery closures frequently involve 50 or more workers at a single site. The nature of the energy business (boom/bust cycles and contract-based crews) does not create any WARN exemption. Each site (rig location, processing facility, corporate office) is evaluated separately.

Technology (Austin, Dallas, Houston)

Austin's tech corridor and Dallas's corporate campuses house hundreds of employers with 100 or more employees. Startup layoffs that cross the 50-employee threshold at a single site trigger WARN even if the company is pre-revenue or investor-funded. Investors and boards are not insulated from liability.

Retail and distribution

Texas is home to major retail headquarters and one of the country's largest warehouse and distribution networks. Store closures affecting 50 or more employees at a single site trigger the plant closing prong of WARN. Retailers closing multiple Texas locations simultaneously must analyze each site independently.

Healthcare

Large Texas hospital systems and physician networks regularly undergo consolidations. Facility closures or service-line eliminations affecting 50 or more clinical or administrative staff at a single campus trigger WARN notice obligations.

Common mistakes Texas employers make

Assuming no state law means no notice obligation

The most common mistake in Texas. The absence of a state WARN statute does not affect federal WARN obligations. Any Texas employer with 100 or more full-time employees that conducts a covered plant closing or mass layoff must comply with federal WARN.

Miscounting employees toward the 100-employee threshold

Some contractors and part-time workers may count toward the 100-employee threshold depending on hours worked. Employers who count only full-time salaried employees may underestimate their headcount and incorrectly conclude WARN does not apply.

Missing the TWC filing

Employees often know to contact the Texas Workforce Commission when they are laid off. Employers sometimes do not know they are required to file with TWC as part of the WARN process. All three required recipients must receive notice simultaneously.

Using the UFBC exception as a general excuse for fast-moving layoffs

The unforeseeable business circumstances exception is narrow. Courts look at whether the circumstances were foreseeable at the time notice was due, not at the time of the event. A layoff driven by factors the employer was tracking does not qualify.

Forgetting that temporary layoffs lasting 6 or more months trigger WARN retroactively

A layoff that begins as temporary and later extends past 6 months may trigger WARN retroactively from the date of the original layoff. Employers who did not give WARN notice at the outset can find themselves liable for back pay and penalties they did not anticipate.

No state WARN in these states too

Florida and Georgia are the other two major employment states with no state-level WARN law. Federal WARN applies in all three.

Florida WARN Act (Federal Only)→Georgia WARN Act (Federal Only)→

Free download

Get the full RIF compliance checklist

66 steps across 9 phases, including WARN Act notice requirements, adverse impact analysis, and documentation. Formatted as an Excel workbook your team can track in real time.

Frequently asked questions

Does Texas have its own WARN Act?

No. Texas has not enacted a state-level plant closing or mass layoff notification law. Texas is notably one of the largest employment states in the country with no state WARN equivalent. Texas employers are governed solely by the federal WARN Act (29 U.S.C. 2101) for mass layoff and plant closing notice obligations.

Do I need to notify the Texas Workforce Commission?

Yes. Under the federal WARN Act, the Texas Workforce Commission (TWC) is the designated state dislocated worker unit for Texas. Covered employers must send written WARN notice to the TWC Rapid Response Unit when a covered plant closing or mass layoff occurs. Notice is submitted through the TWC at twc.texas.gov/businesses/warn-act-notices.

Does federal WARN apply to Texas oil and gas companies?

Yes. If a Texas oil and gas employer meets the federal WARN threshold of 100 or more full-time employees, federal WARN applies fully. Energy sector layoffs and rig shutdowns are a common trigger in Texas. The nature of the industry does not create any exemption from WARN obligations.

What if my layoff is across multiple Texas locations?

Each location is evaluated separately under federal WARN. A plant closing or mass layoff at one Texas site does not aggregate with activity at another site. The thresholds (50 employees for a plant closing, 500 or 50 employees representing 33% of the workforce for a mass layoff) must be met at a single site of employment. However, within a single site, employment losses within a 90-day window are aggregated.

Can I use the unforeseeable business circumstances exception for a sudden contract loss?

Possibly, but courts assess foreseeability at the time the 60-day notice would have been required, not when the contract was originally signed. If the loss of the contract was reasonably foreseeable when notice would have been due, the UFBC exception will not apply. If the cancellation was sudden and unexpected, it may qualify. Employers must still give as much notice as practicable and document the basis for shortened notice in writing.

People Plan

Automate federal WARN compliance for Texas employers

People Plan determines federal WARN coverage from your employee data, calculates the notice period and required recipients, and generates the written notices your legal team reviews rather than drafts. Built for multi-site Texas employers and energy sector RIFs.

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.