Washington State Enacts New Notice Requirements for Business Closures and Mass Layoffs

Key Takeaways
- The Washington state mini-WARN law, effective July 27, 2025, requires employers with 50 or more employees to provide 60 days' advance written notice of mass layoffs or business closures to the Washington State Employment Security Department and affected employees or their bargaining representatives.
- Employees who are on paid family or medical leave under the Washington Paid Family and Medical Leave law are protected from mass layoffs, absent such exceptions as unforeseeable business circumstances or natural disasters.
- Noncompliance with the mini-WARN law can result in a civil penalty of up to $500 per day for failing to notify the ESD.
Washington state recently passed a new law requiring certain notices for business site closings and mass reductions in force. On May 13, 2025, Governor Bob Ferguson signed Engrossed Second Substitute Senate Bill 5525 (E2SSB 5525) into law. The new law, which takes effect July 27, 2025, requires covered employers to provide 60 days' advance written notice of mass layoffs or business closures to the state’s Employment Security Department (ESD) and affected employees or, if the employee is represented by a union, to the employee's bargaining representative.
In passing E2SSB 5525, the "Securing Timely Notification and Benefits for Laid-Off Employees Act," Washington has become the latest state to enact a mini-WARN law. Employers covered by the federal Worker Adjustment and Retraining Notification (WARN) Act must already comply with some of the provisions in the new law.
Covered Employers
E2SSB 5525 covers employers with 50 or more employees, excluding part-time employees.
By contrast, the federal WARN Act only applies to employers with 100 or more employees, excluding part-time employees.[1]
Triggering Events
Mass Layoff
Under the bill, a "mass layoff" is defined as a reduction in workforce that is not due to a business closing and results in the loss of employment for 50 or more employees, excluding part-time employees, within any 30-day period. Noticeably absent from this definition is language in the federal WARN Act that restricts such layoffs to a single site of employment and to a minimum percentage of active employees.[2] Additionally, unlike the federal WARN Act, Washington’s WARN law does not include a 90-day window for grouping together employment losses that result from a common cause or event.
Business Closing
A "business closing" is defined as the permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a site, that results in the loss of employment for 50 or more employees, excluding part-time employees. A business site closure is not confined to job losses happening within just a 30-day or 90-day timeframe, meaning employers cannot circumvent Washington’s WARN requirements by spreading out a shutdown over a longer duration.
Notice Requirements
Notice requirements under Washington's mini-WARN law differ significantly from those under the federal WARN Act, as they require employers to include the job titles and names of all affected employees in their notices, which may raise privacy concerns. When providing notice to the ESD, employers must also include the addresses of these employees. The written notice must also contain the following information:
- The name and address of the location where the business closure or mass layoff will happen, along with the name and contact information of a company representative for questions
- Whether the closure or layoff is permanent or temporary
- The expected date when the first job loss will occur and the planned timeline for all job losses
- Whether the mass layoff or business closing is the result of, or will result in, the relocation or contracting out of the employer's operations or the employees' positions
An employer is also required to give further notice if the date or schedule of dates for a business closing or mass layoff is extended beyond what was stated in the initial notice.
Notice Exceptions
However, the new law provides notice exceptions for both mass layoffs and business closings, including faltering company, unforeseeable business circumstances, and natural disasters. Additionally, employers are not required to follow the notice requirements for mass layoffs if the layoff occurs at the end of a construction project where employees were hired with the understanding that their jobs would last only for the duration of the project, or if the project involves multiple employers and the affected employees are covered by a full union referral or dispatch system.
Employees on Paid Family or Medical Leave
Employees who are on paid family or medical leave under the Washington Paid Family and Medical Leave (PFML) law are protected from mass layoffs. E2SSB 5525 does not specify whether it makes a difference if an employee is on intermittent or continuous leave. However, employers can still include employees on paid family or medical leave in mass layoffs where notification is not required due to exceptions such as unforeseeable business circumstances or natural disasters. Furthermore, these protections do not extend to business closings.
Enforcement
Employers may be liable for an employee’s back pay and lost benefits for up to 60 days. However, liability must be reduced by any wages paid to the employee during the period of the violation and by any amounts paid on behalf of the employee to a third party or trustee, such as premiums for health benefits or payments to a pension plan, during that time. Additionally, any damages paid pursuant to the federal WARN Act will offset the amount of damages owed under Washington's mini-WARN law. Employees, their bargaining representatives, and the ESD can bring a civil action within three years of an alleged violation.
Employers may also face a civil penalty of up to $500 a day for failing to provide notice to the ESD. However, an employer can avoid the penalty by compensating all employees within three weeks from the date the employer orders the mass layoff. As with damages, any payment of a civil penalty pursuant to the federal WARN Act will offset the civil penalty amount owed under Washington's mini-WARN law.
Takeaways
Employers should carefully assess whether Washington’s mini-WARN law applies to their companies, even if the federal WARN Act does not. Employers need to closely monitor any plans for reductions in force, terminations, or business closures that could trigger notice requirements under either Washington or federal WARN laws. If triggered, employers must ensure that all necessary information is included in the written notice provided to the ESD and to affected employees or their bargaining representatives, unless an exception to the notice requirement applies. It is also important for employers to keep track of employees who are on leave under PFML. Additionally, businesses operating in more than one state should be aware of similar mini-WARN laws that may exist in other jurisdictions. Companies with questions or concerns about Washington’s mini-WARN law should consult with trusted legal counsel.
Endnotes
[1] Both E2SSB 5525 and the federal WARN Act define a part-time employee as an employee who is employed for an average of fewer than 20 hours per week or who has been employed for fewer than six of the 12 months preceding the date on which notice is required. However, Washington's law also provides that any definition of part-time employee provided in a collective bargaining agreement supersedes the definition in the bill.
[2] Under the federal WARN Act, a mass layoff is defined as an event resulting in employment loss at a single site of employment during any 30-day period for at least 33% of the workforce (excluding part-time employees) and at least 50 employees. However, the 33% requirement does not apply when 500 or more full-time employees are affected.