WARN Act Exclusion
An exclusion found in employment practices liability (EPL) insurance policies.
Under the federal Workers' Adjustment Retraining Notification (WARN) Act, employers
of 100 or more persons are required to give their workers specific notice periods
prior to various types of mass layoffs or plant closings. The majority of EPL
policies preclude coverage for claims alleging failure to provide such notice
as required by the WARN Act. The rationale for this exclusion is such claims
are within the insured's control, and therefore are preventable.
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