How to Close a Business Legally in New York
90 days of notice, a 50-employee threshold, and the 33% rule — closing a business in New York starts three months before anyone leaves.
New York’s workplace shutdown requirements are among the strictest in the country. The NY WARN Act demands 90 days of advance notice — a full month more than federal WARN — applies to employers with just 50 employees, and uses a unique 33% threshold test for mass layoffs that catches many employers off guard.
How the NY WARN Act Differs from Federal WARN
The NY WARN Act (New York Labor Law Article 25-A) goes beyond the federal WARN Act in several important ways:
| Regulation | What it means for employers |
|---|---|
| 90 days of notice | Federal WARN requires 60. New York requires 90. That extra month creates a much longer planning horizon. |
| Lower employer threshold | NY WARN applies to employers with 50 or more employees. Federal WARN doesn’t kick in until 100. |
| Lower affected-employee threshold | A plant closure affecting 25 or more employees triggers NY WARN. Federal WARN requires 50. |
| The 33% rule for mass layoffs | When 25–249 employees are laid off, the law triggers only if they represent at least 33% of the workforce at that location. At 250+ layoffs, the percentage test doesn’t apply. |
| Shorter relocation distance | NY WARN covers relocations of 50+ miles, compared to 100 miles under federal WARN. |
What Triggers the NY WARN Act? Plant Closures, Layoffs, and Relocations
NY WARN Act Plant Closure Threshold: 25 Employees
A plant closure triggering NY WARN requires:
- The employer has 50+ full-time employees
- The shutdown affects 25 or more full-time employees at a single site of employment
- Employment loss occurs within a 30-day period
There is no percentage test for plant closures. If you’re closing a location and 25 or more people lose their jobs, NY WARN applies.
NY WARN Act Mass Layoff: The 33% Rule Explained
Mass layoffs have a two-tier test:
| Employees affected | Percentage test | NY WARN triggered? |
|---|---|---|
| 25–249 employees | Must be 33% or more of the workforce | Yes, if 33% test is met |
| 250+ employees | No percentage test required | Yes, always |
| Under 25 employees | N/A | No, threshold not met |
Example: A warehouse with 200 employees lays off 60 workers. That’s 30% of the workforce — below the 33% threshold. NY WARN does not apply to the mass layoff provision. But if this is a full shutdown of the location, the plant closure provision applies because 25+ employees are affected.
Does the NY WARN Act Apply to Relocations? (50-Mile Rule)
Moving operations 50 or more miles from the current location triggers NY WARN if it results in employment loss for 25+ employees. This is notably closer than the federal WARN 100-mile threshold. A move from Brooklyn to central New Jersey — roughly 50 miles — could trigger the law even though it wouldn’t trigger federal WARN.
NY WARN Act 90-Day Notice Requirements
Who Must Receive an NY WARN Notice?
NY WARN notice must be sent to:
| Recipient | Details |
|---|---|
| Affected employees | Individual written notice (or to union representatives for represented employees) |
| NY Department of Labor | Written notice, Commissioner of Labor |
| Local workforce investment board | Written notice |
What Must an NY WARN Notice Include?
| Required field | Details |
|---|---|
| Site information | Name and address of the employment site |
| Company contact | Name and phone number of the company official |
| Action type | Statement of whether the shutdown is permanent or temporary |
| Separation timeline | Expected date of the first separation and anticipated schedule |
| Affected positions | Job titles and number of employees in each title |
| Bumping rights | Indication of whether bumping rights exist |
| Union representation | Name of each union representing affected employees |
How to Count the 90-Day NY WARN Notice Period
The 90-day clock runs backward from the first date of employment loss. If the first employee’s last day is July 1, notices must be delivered by April 2. Plan for mailing time — the notice should be postmarked or delivered at least 90 days before the first separation.
When Must New York Employers Pay Final Wages After a Layoff?
New York’s final pay rules are more forgiving than California’s but still have specific requirements:
| Rule | Details |
|---|---|
| Final wages | Must be paid no later than the regular payday for the pay period in which the termination occurs. If your pay period ends Friday and payday is the following Friday, you have until that payday. |
| All compensation | Must include regular wages, overtime, commissions, bonuses that have been earned, and any other promised compensation. |
| Wage theft protections | Under the New York Wage Theft Prevention Act, employees must receive written notice of any changes to their pay rate or pay date. Maintain normal pay practices through the final paycheck. |
| Unused vacation | Payout depends on company policy. New York does not require vacation payout by statute, but if your handbook promises payment at separation, it becomes an enforceable obligation. |
Benefits and COBRA After a New York Shutdown
All benefits continue through the 90-day WARN notice period. After termination, New York’s Mini-COBRA extends continuation coverage to employers with fewer than 20 employees, offering 36 months of coverage — double the standard federal COBRA period.
New York Plant Closure Timeline: 90-Day Compliance Calendar
| Days before shutdown | Action |
|---|---|
| 90+ days | Issue NY WARN notices to employees, DOL, and local workforce board |
| 90 days | Confirm benefits continuation through the notice period |
| 60 days | File federal WARN notice if separately required (100+ employer, 50+ affected) |
| 30 days | Begin preparing final paychecks; verify accrued time balances |
| 14 days | Schedule Rapid Response visit from NY DOL; prepare COBRA election notices |
| 7 days | Verify all final payroll data; confirm final check distribution logistics |
| Last day | Complete final time tracking; distribute final paychecks on or before next regular payday |
| Within 14 days after | Issue COBRA/Mini-COBRA election notices |
NY WARN Violation Penalties
Employers who fail to provide the required 90-day notice under NY WARN are liable to each affected employee for back pay and the value of lost benefits for each day of the violation — capped at 60 days of back pay per employee (matching the federal WARN penalty structure). The employer is also liable for a civil penalty of up to $500 per day of the violation. For a 50-employee shutdown with zero notice, the exposure includes up to 60 days of back pay per employee plus daily state penalties that can apply per employee per day of notice shortfall.
New York Employer Shutdown Compliance Checklist
- NY WARN notices sent 90 days in advance (50+ employer threshold, 25+ affected)
- 33% test calculated correctly for mass layoff triggers (25–249 employees)
- 50-mile relocation rule assessed (lower than federal 100-mile threshold)
- Vacation payout reviewed — required only if company policy promises it
- Mini-COBRA election notices prepared (covers employers with fewer than 20 employees, 36 months)
- Time tracking records finalized and archived
- NYC Fair Workweek premium pay obligations reviewed (if applicable)
Shutdown laws vary by state. See our guides for California, Illinois, New Jersey, and Texas, or read the complete workplace shutdown guide.
More New York employer guides: Weather closure rules in New York | Hiring as a NY sole proprietor
Frequently Asked Questions
How does NY WARN interact with the NYC Fair Workweek Law?
The NYC Fair Workweek Law governs scheduling predictability for fast food and retail workers in New York City. It does not directly overlap with WARN Act notice requirements. However, scheduling changes during the WARN notice period may still trigger premium pay obligations under the Fair Workweek Law. Consult with counsel if you operate covered establishments in NYC.
Can New York Employers Pay Instead of Giving 90 Days’ Notice?
The NY WARN Act does not explicitly provide for pay in lieu of notice. Some employers choose to pay 90 days of wages and benefits instead of keeping employees working, but the notice obligations to the Department of Labor and workforce investment board still must be met. Courts have generally accepted pay in lieu of notice when done correctly, but it is not a statutory safe harbor.
