News & Analysis as of

WARN Act Layoffs

The Third Circuit Weighs In On The Warn Act

by Cole Schotz on

Short Summary- In In re AE Liquidation, Inc., 866 F.3d 515 (3d Cir. 2017), the Third Circuit answered two important legal questions under the Worker Adjustment and Retraining Notification Act of 1988 (the WARN Act). ...more

Hurricane Irma: 10 Challenges for Employers

by Littler on

Hurricane Irma shows no sign of relenting as it barrels toward Florida and the Southeast Coast of the United States. As noted in a prior Littler article about Irma, safety and security are the top priorities at this point....more

Employers Brace for Hurricane Irma

by Littler on

With many Americans still reeling from the devastation of Hurricane Harvey, the next storm is already approaching. Hurricane Irma, one of the strongest storms ever recorded, is approaching Puerto Rico and the U.S. Virgin...more

Without WARN-ing: Third Circuit Clarifies WARN Act's Unforeseen Business Circumstances Exception

by Jones Day on

Valera v. AE Liquidation, Inc., the Third Circuit Court of Appeals agreed with five other circuits in holding that WARN notice was not required where an external event outside the employer's control triggering layoffs was...more

Third Circuit Applies More Flexible Standard for WARN Exemption

The Third Circuit, in In re AE Liquidation, Inc., Case No. 16-2203 (3d Cir. Aug 04, 2017) held that the Debtors were not liable under the WARN Act for failing to warn employees of furloughs and layoffs until those furloughs...more

Thinking Of Shifting Your Retail Business Model? Consider This Your WARN-ing

by Fisher Phillips on

Though the internet has been in our lives for decades and online retailers are hardly a new concept, many brick-and-mortar retailers continue to evaluate the risks and benefits of moving away from the shop on the corner and...more

More Lessons from ESPN

As we previously noted, ESPN laid off approximately 100 employees last week. While ESPN may be the world-wide leader in sports, they do not appear to be the world-wide leader in handling terminations as evidenced by their...more

Hard Times: Employment Law and Cost-Cutting

by Zelle LLP on

When employers face the need to cut costs, they may have to make a series of difficult decisions affecting all aspects of their operation. Among the most difficult cost-cutting measures are those that directly impact...more

American Apparel to Send 3,500 Workers Home: What You Need to Remember About the WARN Act

by Baker Donelson on

In the fallout of American Apparel's planned Chapter 11 bankruptcy, the clothing manufacturer warned almost 3,500 employees in its California locations that they may be laid off come the first of the year. Documents published...more

Minimize the Legal Risks of Layoffs by Careful Consideration of Federal Layoff Laws

by Reminger Co., LPA on

Layoff decisions can be difficult for employers for a number of reasons and it is important for any business to be fully informed when making such decisions. When a company makes a determination that layoffs are necessary,...more

Do You Need to WARN Your Employees?

by Bond Schoeneck & King PLLC on

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

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

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

Downsizing and Firing Employees in California

by WilmerHale on

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

by Miller Canfield on

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

A WARNing to Directors and Officers — Failure to give proper WARN Act notice may breach your fiduciary duty

At first glance, Stanziale v. MILK072011, looks like someone suing over a bad expiration date and conjures up images of Ron Burgundy proclaiming “milk was a bad choice.” But in actuality Stanziale is much more interesting: it...more

Planning for a Government Shutdown

by McGuireWoods LLP on

As described in detail in a recent Washington Update, there is once again a reasonable likelihood that we are headed for a government shutdown beginning Thursday, October 1. This article puts aside politics to focus on the...more

Planning for a Possible Government Shutdown: Labor and Employment Issues for Government Contractors

by McGuireWoods LLP on

With the federal government funded only through Sept. 30, 2015, unless Congress acts quickly, there is a reasonable likelihood of another government shutdown beginning Oct. 1, 2015. The looming shutdown will create...more

Eleventh Circuit Declines to Aggregate Workers of Multiple Contractors for WARN Act Notification Purposes

by Hinshaw & Culbertson LLP on

Closing up shop and winding down a business can have significant legal ramifications for employers if not handled appropriately. The WARN Act was designed to prevent surprise upon unsuspecting groups of employees, but the...more

A WARNing for Related Entities

by Sherman & Howard L.L.C. on

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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