News & Analysis as of

Jevic Could Be the Most Consequential Chapter 11 Decision in Many Years

The U.S. Supreme Court will hear the case of Czyzewski v. Jevic Holding Corp. during the new term that began last week. The questions it presents are relatively simple. First, can a bankruptcy court, in dismissing a case...more

Commercial Restructuring & Bankruptcy Alert - October 2016

Welcome to the October 2016 issue of the CR&B Alert, the newsletter produced by Reed Smith's Commercial Restructuring & Bankruptcy Group. Excerpt from newsletter: DELAWARE AND NEW YORK AT ODDS OVER RECLAMATION...more

Do You Need to WARN Your Employees?

Since 1989, the federal Worker Adjustment and Retraining Notification (“WARN”) Act has required covered employers to give written notice in advance of certain workforce reductions affecting at least 50 employees. Twenty...more

Employment Law Navigator – Week in Review: September 2016 #2

Last week, as we learned that the CIA has invested in another Big Data analytics startup, new headlines and commentary addressed the dangers of hidden bias in technology. LinkedIn changed its search algorithm after the...more

Eighth Circuit Holds Asset Purchaser Liable for Failure to Provide WARN Notice to Seller's Employees

In a typical corporate transaction, the parties structure the deal as an asset purchase, whereby the buyer purchases essentially all of the company’s property, equipment, goodwill, customer lists, etc. If the asset purchase...more

The Transformation of the Workplace Through Robotics, Artificial Intelligence, and Automation: Employment and Labor Law Issues,...

The twin forces of technology and globalization are reinventing and redefining the workplace and the way work is performed. The workplace automation of the last century is rapidly being augmented and replaced by intelligent...more

A Tale of Two Decertification Motions

The Seventh and Eighth Circuits both addressed motions to decertify classes the week of July 5—with divergent results.  These cases illustrate the deference afforded district courts’ class certification determinations.  Both...more

U.S. Supreme Court to Weigh in on Structured Dismissals and Settlements Circumventing the Bankruptcy Code’s Priority Scheme

On June 28, 2016, the U.S. Supreme Court agreed to hear a challenge to a Third Circuit-affirmed settlement and dismissal of the chapter 11 cases of Jevic Transportation, Inc. (“Jevic”) and certain of its affiliates. See...more

June 2016 Independent Contractor Misclassification and Compliance News Update

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

Supreme Court to Hear Truck Drivers’ Challenge to Structured Dismissals in Bankruptcy

The U.S. Supreme Court will hear a group of truck drivers’ challenge to the dismissal of a chapter 11 bankruptcy case that was designed to avoid paying the drivers’ claims. The truck drivers are appealing the Third Circuit’s...more

Employment Law Issues in Mergers and Acquisitions

Last week, Microsoft announced its purchase of LinkedIn for $26.2 billion. This acquisition is interesting for a number of reasons, and is very likely to affect the future of professional social networking. It also got us...more

WARN Act and Oil Field Rightsizing: Court Finds Layoff Does Not Require Notice

In a recent case involving the layoff of employees assigned to land drilling rigs, the U.S. District Court for the Northern District of Texas limited the ability of plaintiffs to claim that multiple rigs collectively form a...more

Layoffs Without WARN-ing: How to Use the Unforeseeable Business Circumstance Exception

A recent federal trial court decision out of Delaware, In re AE Liquidation, Inc. v. Burtch, No. 14-1492-LPS (D. Del. Mar. 31, 2016), illustrates how, even in the context of a very troubled business, the Worker Adjustment and...more

What GCs Need to Know About Reductions in Force

Reductions in force (“RIFs”) are group terminations, usually driven by the financial condition or business needs of the employer. An employer’s General Counsel, even though responsible for protecting the employer from legal...more

Labor & Employment Issues Facing the Healthcare Industry

Public discourse on "healthcare" has focused primarily on health insurance and the significant changes made by the Affordable Care Act. But what about the providers of healthcare—the doctors, nurses, hospitals, pharmaceutical...more

Mine Your Own Business? Three Neighboring Mines Don’t Meet WARN Act “Single Site of Employment” Test

When are sister corporations considered a “single employer” under the Worker Adjustment and Retraining Notification Act (WARN Act)? And when are their worksites considered a “single site of employment”? ...more

WARN Act Does Not Prohibit Employers From Spacing Layoffs to Avoid Notice Requirements

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days advance notice to employees of certain qualifying plant closings and mass layoffs. The WARN thresholds are based on...more

Proposed Legislation Expands Whistleblower Protections

The Whistleblower Augmented Reward and Nonretaliation Act of 2016, with the confusing alternative title of the WARN Act of 2016, has been introduced before the House of Representatives. The proposed legislation would...more

The Whistleblower Augmented Reward and Non-Retaliation Act of 2016

Senator Tammy Baldwin (D-Wis.) and Rep. Elijah Cummings (D-Md.) recently introduced the Whistleblower Augmented Reward and Non-Retaliation Act of 2016 (“WARN Act”), which aims to bolster whistleblower protections under both...more

Employment Law - March 2016

Failure to WARN Alleged in Complaint Against Yahoo - Why it matters - In a novel lawsuit, a former employee of Yahoo claims that the company manipulated its performance-review rating system in order to dodge both...more

Congress to Consider New Bill Aimed at Increasing Whistleblower Rewards and Enhancing Company Liability

Leading members of the House Oversight and Government Reform Committee propose legislation to increase whistleblower rewards and expand companies’ liability for whistleblower claims. ...more

Downsizing and Firing Employees in California

Most companies will eventually face the unpleasant task of terminating an employee or group of employees. When they do, it’s critical that they follow best practices and comply with applicable laws for many reasons, ranging...more

Not So Final WARNing: Sixth Circuit Finds That Employment Ends with Termination of Wages, Not Notice

In Morton v. Vanderbilt Univ., 2016 WL 52439 (6th Cir. Jan. 5, 2016), the Sixth Circuit recently held that, for purposes of the Worker Adjustment and Retraining Notification Act (“WARN Act”), employment does not end at notice...more

498, 499, 500! Not So Fast, Says the Sixth Circuit on WARN Act Case

This week, the Sixth Circuit weighed in on what it identified as an “unusual” case involving the seldom-seen Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act requires employers to provide at least 60...more

Notice of Future Termination Does Not Constitute Immediate Employment Loss Under the WARN ACT

The U.S. Court of Appeals for the Sixth Circuit recently clarified that when an employer provides notice to a group of workers that their employment will be terminated in the future, they do not suffer an immediate employment...more

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