WARN Act

News & Analysis as of

Alice in Cook County, Illinois: A View Through the Looking Glass at a Ridiculous Wage-Theft Ordinance

Starting May 1, 2015, employers in Cook County will be subject to a new “Wage-Theft Ordinance” that could lead to employers incurring massive property tax liabilities, business license revocation, and debarment from county...more

Managing Workforce Contraction During An Energy Slump: Frequently Asked Questions

Continuing the Q&A series following our previous in-house “Falling Oil Prices and RIFs: A Roundtable Overview of the Most Significant Legal Compliance Obligations” compliance seminar, this week's discussion centers around the...more

Tread Carefully When Implementing a Reduction in Force

With recent price drops in the oil and gas industry it is likely that reductions in force (RIFs) are looming on the horizon. But employers need to tread carefully when implementing any RIF, as it can raise thorny issues under...more

A WARN Case Study: Are Workers on Layoff “Employees” and the Hidden Dangers of Exposing Controlled Groups to Liability

Last week the U.S. District Court in Cleveland issued a decision that, once again reminds us in two ways how devilishly tricky the Worker Adjustment and Retraining Notification (WARN) Act can be when determining what is a...more

Oil Price Decline: Positioning for Turnaround or Sale

As a reaction to the dramatic oil price volatility, many energy companies plan to streamline operations by reducing work force and shedding assets. Those who do so face tightening credit and decline in asset value that may...more

Layoffs in the Energy Sector – Are Employers Prepared?

Over the past few weeks, the media has focused intently on the oil and gas industry’s extensive layoffs. Well known energy companies have made front-page news with their announcements of their significant layoffs that have...more

It’s All in the Family: Shifting Standards for Joint-Employer Liability

The concept of joint-employer liability is popping up in the news a lot again. This is because the NLRB is taking a more aggressive view on joint-employer standards under the National Labor Relations Act, particularly as to...more

Disaster and Pandemic Planning for Employers – A Primer

The only thing certain about disasters and pandemics is that they are uncertain. You never know who, what, where, why and when they will strike. But whatever the cause, a disaster or pandemic can have a serious impact on a...more

Asset Purchase: Initial Considerations

A recent post discussed a few generalities on stock purchases and asset purchases. In a basic sense, the characteristics of a stock purchase and of an asset purchase will guide the parties in the earliest stages of...more

Employees Face Uphill Battle in Holding Private Equity Firms Accountable under WARN Act

The United States District Court in Delaware recently issued a welcome decision for private equity firms whose portfolio companies run afoul of the Worker Adjustment and Retraining Notification Act (the “WARN Act”). In In re...more

Claims of Branding, Acquisition and Control Satisfy Single-Employer Test

The Worker Adjustment and Retraining Notification Act (WARN Act) was enacted in 1988 to allow workers to adjust to the prospective loss of employment from a plant closing or mass layoff. It requires employers to give affected...more

Key Take-Aways from the "Impact of Mergers & Acquisitions on California Employers" Presentation

As a follow up to the April 29, 2014 audiocast presented by lawyers from the California HR team on the “Impact of Mergers & Acquisitions on California Employers,” the presenters have shared their most important “take-away”...more

Why Private Equity Funds Face Employment Risks

Suddenly, the advance sheets show a wave of litigation targeting private equity funds. See, e.g., Guippone v. BH S&B Holdings LLC, 737 F3d. 221 (2d Cir. 2013) (private equity funds potentially liable for WARN Act liability);...more

New York Bankruptcy Court Strikes Defenses To Federal And State WARN Acts

In re: Dewey & LeBoeuf LLP, No. 12-12321 (MG) (S.D.N.Y. Bankr., April 10, 2014): As part of the bankruptcy proceedings involving Dewey & LeBoeuf LLP, the U.S. Bankruptcy Court for the Southern District of New York struck...more

Employer Loses WARN Affirmative Defenses In Class Action Due To Insufficient Description In Notice

Things seem to be going from bad to worse for defunct law firm Dewey & LeBoeuf. As criminal charges continue to loom for some former Dewey partners, the judge overseeing Dewey’s bankruptcy has now ruled that the firm cannot...more

Focus on Private Equity - April 2014

In This Issue: - Private Equity Firms Face Potential Liability Under Plant Closing Laws - Incentivising Management Across the Pond - Excerpt from Private Equity Firms Face Potential Liability Under Plant...more

Equity Investors: Be ForeWARNed

The Worker Adjustment Retraining and Notification Act (WARN Act) requires certain employers to give employees 60 days’ notice of plant closings and mass layoffs. The goal of the WARN Act is to “provide workers and their...more

Employment Law Newsletter - April 2014

In This Issue: - Fairfax Circuit Court Strikes Down Noncompete as Overbroad, Offering Yet Another Lesson for Employers - No WARNing of Bankruptcy? - Department of Labor Further Delays Publication of its Final...more

No WARNing of Bankruptcy?

When Reston-based Simplexity, LLC (known more commonly as Wirefly.com and its related sites) recently filed for chapter 11 bankruptcy it had, sadly, already terminated nearly its entire workforce. According to pleadings...more

New Bill Would Suspend Interest Payments On Mortgages For Employees Aggrieved By Violations Of The New Jersey WARN Act

On February 25, 2014, a bill was introduced and referred to the Senate Commerce Committee that would allow employees to suspend payment of interest on their mortgages if they were affected by a violation of the Millville...more

Employment Flash - February 2014

In This Issue: - US Supreme Court Rules on Donning and Doffing Issue - NLRB Judge Invalidates Arbitration Agreement Without Class Action Waiver - Second Circuit Rules on Single Employer Liability Under the WARN...more

Four Workplace Issues In-House Counsel Should Consider in a Business Improvement Plan

Last week I had the pleasure of being a panelist at the Association for Corporate Growth (Boston) and the Turnaround Management Association (Northeast) joint conference on “Challenges and Opportunities in US Manufacturing.” A...more

WARN Liability: Who’s in Control?

Last month, we wrote about Young v. Fortis Plastics, where an Indiana District Court found that a private equity firm could be on the hook for the WARN Act liabilities of one of its portfolio companies under the “single...more

A WARNing for Related Entities

When are related entities part of one “employer” under the WARN Act? When they function as one employer. In Guippone v. BH S&B Holdings LLC et al., No. 12.183-cv, 2013 WL 6439354 (2nd Cir. Dec. 10, 2013), the 2nd Circuit...more

New York Federal Court Does and Doesn’t Address Contours of Employer Liability under the Federal and New York State WARN Acts

Under the federal WARN Act, and its more expansive counterpart, the New York State WARN Act, a sufficiently-sized employer must (absent limited exceptions) provide workers with a head’s up that the employer might shut down...more

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