[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5761 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5761
To amend the Worker Adjustment and Retraining Notification Act to
support workers who are subject to an employment loss, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 14, 2025
Mrs. Sykes (for herself, Ms. Budzinski, and Mrs. Dingell) introduced
the following bill; which was referred to the Committee on Education
and Workforce
_______________________________________________________________________
A BILL
To amend the Worker Adjustment and Retraining Notification Act to
support workers who are subject to an employment loss, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Warning Act of 2025''.
SEC. 2. DEFINITIONS; PROVISION OF NOTICE OF SITE CLOSINGS AND MASS
LAYOFFS.
(a) Warn Act Amendments.--Sections 2 and 3 of the Worker Adjustment
and Retraining Notification Act (29 U.S.C. 2101; 2102) are amended to
read as follows:
``SEC. 2. DEFINITIONS; EXCLUSIONS FROM DEFINITION OF LOSS OF
EMPLOYMENT.
``(a) Definitions.--As used in this Act:
``(1) Affected employee.--The term `affected employee'
means a full-time or part-time employee who may reasonably be
expected to experience an employment loss as a consequence of a
proposed site closing or mass layoff by the employee's
employer.
``(2) Employer.--
``(A) In general.--The term `employer' means any
business enterprise of one or more entities that--
``(i) employs 50 or more employees,
including part-time employees, in the
aggregate; or
``(ii) has an annual payroll of at least
$2,000,000.
``(B) Multiple entities.--
``(i) In general.--In the case of a
business enterprise of more than one entity,
the entity subject to the requirements under
this Act as an employer of an affected employee
shall be the entity that directly employs such
employee.
``(ii) Parents, affiliates, and contracting
companies.--A parent, affiliate, or contracting
company of the entity described in clause (i)
may also be subject to the requirements under
this Act as an employer of the affected
employee described in such clause based on the
degree of control or integration the parent,
affiliate, or contracting company exercises
outside of or at the single site of employment
at which the site closing or mass layoff
occurred. Such control or integration shall be
indicated by such factors as--
``(I) common ownership or financial
control;
``(II) common directors or
officers;
``(III) de facto exercise of
control over the circumstances relating
to such site closing or mass layoff;
``(IV) unity of personnel policies
emanating from a common source; or
``(V) dependency of operations.
``(C) Additional definitions.--For purposes of
subparagraph (B)--
``(i) the term `contracting company' means
an ultimate or intermediate client of an
independent contractor or a provider of
financial services that participates directly
or indirectly in making decisions that affect
the provision of notice required under this
Act; and
``(ii) the term `parent' means an ultimate
owner or intermediate owner, regardless of
amount of ownership interest, that participates
directly or indirectly in making decisions that
affect the provision of notice required under
this Act.
``(D) Consideration.--In allocating liability under
this Act among multiple entities of a business
enterprise, substantial weight shall be given to any
decisionmaking responsibility an entity had for the
failure to provide notice to affected employees as
required under this Act.
``(3) Employment loss.--Subject to subsection (b), the term
`employment loss' means--
``(A) an employment termination, other than a
discharge for cause, voluntary departure, or
retirement;
``(B) a layoff through a mass layoff or site
closing that is not a temporary mass layoff or
temporary site closing in compliance with the
requirements under paragraphs (2) and (3) of section
3(d); or
``(C) a reduction in hours of work of more than 50
percent during each month of any 90-day period that is
not part of a short-time compensation program provided
in the case of such a temporary mass layoff or
temporary site closing.
``(4) Mass layoff.--
``(A) In general.--The term `mass layoff' means a
reduction in force that results in an employment loss
during any 90-day period--
``(i) for 10 or more employees of an
employer at a single site of employment, as
calculated under subparagraph (B); or
``(ii) for 250 or more employees of an
employer, irrespective of employment site.
``(B) Calculation.--The number of employees at a
single site of employment who suffer an employment loss
shall be calculated in a manner that includes--
``(i) all such employees who work at the
physical location of the site; and
``(ii) all such employees who work remotely
and--
``(I) are assigned to or otherwise
associated with the site;
``(II) receive assignments or
training from the site;
``(III) report to a manager
associated with the site; or
``(IV) whose job loss was a
foreseeable consequence of a reduction
in force at the site.
``(5) Representative.--The term `representative' means an
exclusive representative of employees within the meaning of
section 8(f) or 9(a) of the National Labor Relations Act (29
U.S.C. 158(f); 159(a)) or section 2 of the Railway Labor Act
(45 U.S.C. 152).
``(6) Secretary.--The term `Secretary' means the Secretary
of Labor.
``(7) Short-time compensation program.--The term `short-
time compensation program' means--
``(A) a short-time compensation program, as defined
in section 3306(v) of the Internal Revenue Code of
1986, that is operational; or
``(B) a program determined by the Secretary to be
equivalent to a program described in subparagraph (A)
that provides, in comparable amounts and with
comparable restrictions to such a program, employees
experiencing a temporary reduction in work hours with
pro rata pay, unimpaired benefits, and supplemental
income.
``(8) Site closing.--The term `site closing' means the
permanent or temporary shutdown of a single site of employment,
or one or more facilities or operating units within a single
site of employment, that results in an employment loss at the
single site of employment during any 30-day period for 5 or
more employees, calculated in the same manner as described in
paragraph (4)(B).
``(9) Unit of local government.--The term `unit of local
government' means any general purpose political subdivision of
a State which has the power to levy taxes and spend funds, as
well as general corporate and police powers.
``(b) Exclusions From Employment Loss Due to a Site Closing or Mass
Layoff.--An employee shall not be considered to have experienced an
employment loss due to a site closing or mass layoff if the site
closing or mass layoff is the result of the relocation or consolidation
of part or all of the employer's business and, prior to the site
closing or mass layoff--
``(1) the employer offers to transfer the employee to a
different site of employment within a reasonable commuting
distance with no more than a 90-day break in employment; or
``(2) the employer offers to transfer the employee to any
other site of employment regardless of distance with no more
than a 90-day break in employment, and the employee accepts
within 30 days of the offer or of the site closing or mass
layoff, whichever is later.
``SEC. 3. NOTICE REQUIRED BEFORE SITE CLOSINGS AND MASS LAYOFFS.
``(a) Notice to Employees, State Dislocated Worker Units, and Local
Governments.--Except as provided in subsection (c), an employer shall
not order a site closing or mass layoff until 90 calendar days after
the date on which the employer has served written notice of such an
order to--
``(1)(A) each representative of the affected employees as
of the time of the notice; or
``(B) each affected employee;
``(2) the Secretary and the Governor of the State where the
site closing or mass layoff is to occur;
``(3) the State or entity designated by the State to carry
out rapid response activities under section 134(a)(2)(A) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3174(a)(2)(A)); and
``(4) the chief elected official of the unit of local
government within which such closing or layoff is to occur.
``(b) Duties Upon Receipt of Notice.--A State or designated entity
that receives a notice under subsection (a)(3) shall--
``(1) make the information in the notice publicly available
within the jurisdiction of the local government involved;
``(2) transmit a copy of the notice to each affected local
area (as defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102)), so that the information in
the notice can be distributed through activities under section
134(c)(2)(A)(iv)(I)(aa) of that Act (29 U.S.C.
3174(c)(2)(A)(iv)(I)(aa)); and
``(3) ensure that--
``(A) an appropriate labor-management committee
described in section 3(51)(C) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102(51)(C))
has been established or is established not later than
20 days after receipt of the notice; and
``(B) an individual is designated, by not later
than 20 days after receipt of such notice, to
coordinate rapid response activities described in
section 134(a)(2)(A)(i) of such Act, in consultation
with the labor-management committee.
``(c) Reduction of Notification Period.--
``(1) Potential new business or financing.--An employer may
order the site closing of a single site of employment before
the conclusion of the 90-day period described in subsection (a)
if the employer can demonstrate that--
``(A) as of the date that notice would have been
required, and continuing until it was provided, the
employer was being offered, on acceptable terms, new
business or financing in an amount which, if obtained,
would have enabled the employer to avoid the site
closing; and
``(B) had notice been given as of such date, the
notice would have precluded the new business or
financing.
``(2) Unforeseen circumstances.--
``(A) Natural disasters.--The 90-day advance notice
under subsection (a) shall not be required if the site
closing or mass layoff is due directly to any form of
natural disaster, such as a flood, earthquake, or a
drought ravaging the farmlands of the United States.
``(B) Terrorist attacks.--The 90-day advance notice
under subsection (a) shall not be required if the site
closing or mass layoff is due directly to a terrorist
attack that affects the operation of the site.
``(C) Public health emergencies.--The 90-day
advance notice under subsection (a) shall not be
required if the site closing or mass layoff is due
directly to a catastrophic infectious disease outbreak
or other public health emergency that affects the
operation of the site.
``(3) Provision of notice.--
``(A) Potential new business or financing.--An
employer relying on paragraph (1) shall be liable under
this Act for any portion of the 90-day period described
in subsection (a) prior to the provision of notice in
which it is unable to meet the requirements of such
paragraph.
``(B) Other requirements.--
``(i) In general.--An employer relying on
paragraph (1) or (2) shall give as much notice
as is practicable and at that time shall give a
brief statement of the basis for reducing the
notification period.
``(ii) Liability.--An employer that fails
to satisfy the requirements under clause (i)
shall be liable under this Act for the full 90-
day period described in subsection (a).
``(d) Temporary Mass Layoff or Site Closing.--
``(1) In general.--A layoff through a temporary mass layoff
or temporary site closing shall be treated as an employment
loss under this Act as of the date of the commencement of the
temporary mass layoff or temporary site closing unless the
employer complies with the requirements under paragraphs (2)
and (3).
``(2) Initial period of temporary mass layoff or site
closing.--With respect to the period of a temporary mass layoff
or temporary site closing that has not been extended as
described in paragraph (3), the employer shall--
``(A) at the commencement of such layoff or
closing, provide a written notice as required under
subsection (a) stating--
``(i) the date on which the employer
expects to recall the affected employees to
work, which date shall be less than 90 days
after the date of such commencement; and
``(ii) that the employer will provide
short-time compensation for the duration of
such layoff or closing through a short-time
compensation program;
``(B) as soon as practicable, provide short-time
compensation through such program, which shall continue
to be provided for the duration of the temporary mass
layoff or temporary site closing; and
``(C) on or before the recall date stated under
subparagraph (A)(i)--
``(i) in good faith, recall the affected
employees for at least 90 days of employment;
``(ii) extend the period of the temporary
mass layoff or temporary site closing in
accordance with paragraph (3); or
``(iii) except as provided in paragraph
(4)(C), terminate the affected employees with
not less than 90 days' notice.
``(3) Extension of period of temporary mass layoff or site
closing.--In the case the employer seeks to extend the period
of a temporary mass layoff or temporary site closing beyond the
recall date stated under paragraph (2)(A)(i) or a subsequent
recall date as provided under this paragraph, the employer
shall--
``(A) prior to the pending recall date, provide to
each individual or entity described in subsection (a) a
written notice of such extension, stating--
``(i) that the period of the temporary mass
layoff or temporary site closing will be
extended to a new recall date within 90 days of
the pending recall date; and
``(ii) that the employer will continue
providing short-time compensation as described
in paragraph (2)(A)(ii);
``(B) continue providing short-time compensation as
described in paragraph (2)(B); and
``(C) on or before such new recall date--
``(i) in good faith, recall the affected
employees for at least 90 days of employment;
``(ii) further extend the period of the
temporary mass layoff or temporary site closing
in accordance with this paragraph; or
``(iii) except as provided