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Warn Act Exclusion

WARN Act Exclusion

Definition

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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