WARN Act exclusion

The Workers' Adjustment Retraining Notification (WARN) Act exclusion is found in employment practices liability insurance policies.

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Additional Information

Under the federal 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 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.