WARN Act

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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

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

Who Should Hold the Bag for Employment Liabilities When the Portfolio Company Goes “Belly-Up”? The private equity firm, maybe.

In the world of private equity, vast sums of money are raised by private investors who pool their money into collective funds in order to acquire companies, i.e., a “portfolio company”, with the goal of eventually flipping...more

Court Upholds Claim Against Private Equity Firm for Federal Labor Law Violation Stemming from Closure of Portfolio Company

A decision last month by the district court for the Northern District of Indiana is the latest in a string of recent judicial decisions to confirm that a plaintiff has successfully stated a plausible claim for relief under...more

Navigating Post-Shutdown Employment Law Issues For Government Contractors

After more than two weeks, the federal government shutdown finally ended late in the evening on October 16, 2013. Although the end of the shutdown is great news for federal employees and government contractors, the last three...more

Government Contractor Employment and Contract Issues Arising from the Government Shutdown

A host of issues affecting government contractors have arisen as a result of the government shutdown and the pending debt ceiling impasse. Some concerns are contract-based; some are HR-based, and some concerns are practical....more

A WARNing to Private Equity Regarding Potential Liability for Employment Decisions by Portfolio Companies

A federal district court in Indiana recently ruled that a plaintiff's class action lawsuit could proceed against both a New York private equity firm and one of its portfolio companies for an alleged violation of the Worker...more

Practical Employment Law Issues Facing Government Contractors In The Wake Of The Federal Government Shutdown

On October 1, 2013, the federal government shut down for the first time in seventeen years. The last government shutdowns in 1995 and 1996 lasted a total of 28 days. Government contractors are already feeling the bite...more

Indiana District Courts Finds Private Equity Firm Potentially Liable in WARN Class Action

This seems to be the month for class action cases presenting unusual issues in combination. Last week we wrote about a class action disparate impact claim of disability discrimination against the obese in which the court...more

Providing Employees with Notice of Layoffs in Chapter 11 Cases

The "WARN Act" (Worker Adjustment and Retraining Notification Act) requires that larger employers provide 60 days' notice in advance of plant closings or other mass layoffs....more

Bankruptcy Claims vs. Class Actions: Southern District of New York Finds Class Action Process Superior

In bankruptcy proceedings, is a class action superior to the claims administration process as a vehicle for resolving claims under the federal and New York State Workers Adjustment and Retraining Notification Act (the “WARN...more

Although Funding Bill Offers Agencies More Discretion On Sequestration, Contractors Should Consider Employment Law Implications in...

On March 21, 2013, the House of Representatives approved a spending bill that would provide funding for the federal government through September 30. The Senate had already passed the bill and President Obama is expected to...more

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