Severance pay and WARN Act in 401(k)

[Guest Ella]

I notice the article today that says that severance pay cannot be used for 401(k) contributions because only active employees can participate. What if the layoff involves so many employees that it triggers WARN Act pay and the employees are entitled to 60 days of pay and benefits. How do you give them the 60 days of 401(k) when you cannot use severence pay and the employees are gone?