An exclusion found in employment practices liability insurance (EPLI) 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
employment practices liability (EPL)
policies preclude coverage for claims alleging failure to provide such notice
as required by the WARN Act. The rationale for this exclusion is that such claims
are within the insured's control and therefore are preventable.
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