Wisconsin WARN Act

Wisconsin WARN Act: complete guide

Wisconsin has its own business closing and mass layoff law with a threshold half that of federal WARN. Employers with 50 or more full-time employees must give 60 days notice before covered layoffs, even if they are not covered by federal WARN.

WisconsinWI WARNWis. Stat. 109.07Mass Layoff

50

Full-time employees

60 days

Advance notice required

None

Mandatory severance

OverviewDoes WI WARN apply?Thresholds and triggersExceptionsNotice requirementsWI WARN vs. Federal WARNPenalties and calculationCommon mistakesFAQ

What is the Wisconsin WARN Act?

The Wisconsin WARN Act (Wis. Stat. section 109.07), formally the Business Closing and Mass Layoff Law, is a state-level notification law that applies to Wisconsin employers with 50 or more full-time employees. It requires 60 days advance written notice before a covered business closing or mass layoff, matching federal WARN, but with a much lower employer threshold and a lower mass layoff percentage trigger.

The practical consequence: employers with 50 to 99 full-time employees are not covered by federal WARN but are covered by the Wisconsin WARN Act. If you operate in Wisconsin and employ at least 50 people in the state, WI WARN applies to any qualifying layoff at a Wisconsin site.

Both laws can apply simultaneously

If your company has 100 or more full-time employees, both federal WARN and the Wisconsin WARN Act apply to Wisconsin-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 WI WARN has a lower employer threshold and a broader mass layoff trigger that federal WARN does not match.

Does WI WARN apply to your layoff?

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

1

Do you have 50 or more employees?

Part-time employees count toward the 50-employee coverage threshold in Wisconsin, unlike the federal WARN headcount. Independent contractors do not count. This low threshold means many mid-size employers who assume they are too small for WARN are in fact covered.

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

Is the action a business closing or mass layoff at a Wisconsin site?

A business closing is the permanent or temporary shutdown of an employment site, or one or more facilities or operating units within a site, affecting 25 or more full-time employees within a 30-day period. A mass layoff is a reduction in force that is not a business closing.

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

Does the layoff meet a covered threshold?

WI WARN requires notice if, within a 30-day period, the action results in employment loss for: (a) 25 or more full-time employees who represent at least 25% of the full-time workforce at the site, OR (b) 500 or more full-time employees regardless of percentage. A business closing affecting 25 or more full-time employees is also covered.

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

Does an exception apply?

Three exceptions exist: faltering company (business 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 Wisconsin WARN Act uses different thresholds for business 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 temporary layoff lasting more than 6 months, which Wisconsin treats as a business closing
  • 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

WI WARN applies to employers with 50 or more employees. Part-time employees count toward this coverage threshold, even though they do not count toward the 25-employee trigger.

Count toward 50

  • Full-time employees
  • Part-time employees (count toward the 50 coverage threshold)
  • Employees on temporary layoff with recall rights

Do not count

  • Independent contractors
  • Employees of a separate legal entity without common control
  • Part-time employees toward the 25-employee trigger

Business closing trigger

A business closing is the permanent or temporary shutdown of an employment site, or of one or more facilities or operating units within a site, within a 30-day period, if the shutdown results in employment loss for:

25 or more full-time employees at the affected site

Shutting down a single facility or operating unit within a larger site counts as a business closing if 25 or more full-time employees lose employment as a result. A temporary layoff lasting more than 6 months is treated as a business closing.

Mass layoff trigger

A mass layoff (not a business closing) requires notice if either of these thresholds is met at a single site of employment within a 30-day period:

Option A

25+ employees

who represent at least 25% of the full-time workforce at the site

Option B

500+ employees

regardless of what percentage of the workforce they represent

Lower percentage than federal WARN

Federal WARN requires the laid-off employees to represent 33% of the workforce for the percentage-based trigger. Wisconsin uses 25%. A site with 100 employees could trigger WI WARN if 25 of them (25%) are laid off, while federal WARN would not apply.

30-day and 90-day aggregation rules

Wisconsin counts employment losses within a 30-day period to determine whether a threshold is met, and like federal WARN it aggregates separate actions within a 90-day rolling window. Staggered rounds of 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 Wisconsin 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

Business 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 business 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

Business 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

Business 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. Wisconsin requires the same categories of recipients as federal WARN, with state agency notice going to the Wisconsin Department of Workforce Development (DWD).

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.

  • Wisconsin DWD

    The Wisconsin Department of Workforce Development, the state dislocated worker unit. Submit the required notice form with the layoff details specified by the statute.

  • 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 business closing, whether the entire site 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.

Wisconsin WARN vs. federal WARN

WI WARN is broader in two ways: a much lower employer threshold and a lower mass layoff percentage trigger. The table shows where each law differs. Rows highlighted in green are where Wisconsin is more protective.

Requirement

WI WARN

Federal WARN

  • Employer threshold

    50 employees

    100 full-time employees

  • Notice period

    60 days

    60 days

  • Business closing trigger

    25 full-time employees

    50 full-time employees

  • Mass layoff (% trigger)

    25 employees + 25% of workforce

    50 employees + 33% of workforce

  • Mass layoff (absolute trigger)

    500 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 (business closings only)

    Yes (plant closings only)

  • State agency notice

    Wisconsin DWD

    State dislocated worker unit

WI WARN differences highlighted in green. Where WI WARN is more protective, it governs for Wisconsin-based employees regardless of whether federal WARN also applies.

Penalties for violation

Wisconsin 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 the company is too small to be covered

The 50-employee threshold catches employers who assume WARN only applies to large companies. An employer with 60 full-time employees is below the federal WARN threshold of 100 but is squarely covered by Wisconsin law. Many mid-size employers learn this only after a violation.

Mixing up which headcount the part-time rule applies to

Part-time employees count toward the 50-employee coverage threshold but do not count toward the 25-employee trigger. Counting part-timers in the trigger calculation can wrongly suggest WARN applies; excluding them from the coverage count can wrongly suggest it does not.

Forgetting to notify the Wisconsin DWD

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

Treating a long temporary layoff as outside WARN

A temporary layoff that lasts more than 6 months is treated as a business closing under Wisconsin law. An employer that planned a 4-month layoff and then extended it can retroactively trigger WARN obligations it did not provide notice for.

Ignoring the 30-day and 90-day aggregation rules when phasing layoffs

Phasing a large reduction into smaller rounds does not avoid WARN. Wisconsin counts employment losses within a 30-day period and aggregates separate actions within 90 days. 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 Wisconsin WARN Act?

The Wisconsin Business Closing and Mass Layoff Law (Wis. Stat. section 109.07) requires employers with 50 or more full-time employees to provide 60 days advance written notice before a business closing or mass layoff. A business closing affects 25 or more full-time employees at a site. A mass layoff affects 25 or more full-time employees who represent at least 25% of the site workforce, or 500 or more full-time employees regardless of percentage.

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

Yes. The Wisconsin WARN Act applies to employers with 50 or more full-time employees, which is half the 100-employee federal WARN requirement. An employer with 60 full-time employees is not covered by federal WARN but is covered by Wisconsin law and must comply with the 60-day notice requirement.

How does Wisconsin WARN differ from federal WARN?

The Wisconsin WARN Act has a lower employer threshold (50 vs. 100 under federal WARN) and a lower mass layoff percentage trigger (25 employees who represent 25% of the site workforce, vs. 33% under federal WARN). The notice period is the same (60 days). Wisconsin 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 WI WARN, but smaller employers may be covered only by WI WARN.

What is the penalty for violating the Wisconsin WARN Act?

An employer that violates the Wisconsin 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 Wisconsin WARN Act have a faltering company exception?

Yes. Like federal WARN, the Wisconsin 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 business closings, not mass layoffs.

Who must receive WARN notice in Wisconsin?

Under both federal and Wisconsin WARN, the employer must provide written notice to: (1) each affected employee or their union representative; (2) the Wisconsin Department of Workforce Development (DWD); and (3) the chief elected official of the 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

WI WARN coverage calculated automatically

People Plan determines WARN coverage under both federal and Wisconsin 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.