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If a client with 40 full-time and 10 temporary workers lays off 10 temporary workers and 25 full-time staff, are WARN notifications required?

  1. Yes, because there are layoffs

  2. No, due to the number of employees involved

  3. Only if the total number of layoffs exceeds 30

  4. Yes, because the company has both temporary and permanent staff

The correct answer is: No, due to the number of employees involved

In determining whether WARN (Worker Adjustment and Retraining Notification) notifications are required, it is crucial to consider the specific criteria set out in the WARN Act. This law mandates that employers with 100 or more employees provide 60 days' notice before a mass layoff or plant closing. In this scenario, the client has a total workforce of 40 full-time employees and 10 temporary employees, equating to 50 employees in total. With the layoffs of 10 temporary workers and 25 full-time workers, the total number of layoffs is 35. However, the WARN Act applies to employers with a workforce of 100 or more, which this client does not meet. Therefore, no WARN notifications are required. The correct choice emphasizes that the number of employees involved in the layoffs is insufficient to trigger the WARN notification requirement, as the total employee count prior to the layoffs does not reach the threshold specified by the WARN Act.