News & Analysis as of

WARN Act

Acquirers Beware: Salary History Bans Impact Employment Diligence and Arrangements

New state and local laws might change employment salary due diligence and post-closing arrangements in M&A deals New state and local laws might change employment salary due diligence and post-closing arrangements in M&A...more

How to Craft an Employee Handbook Outside the United States or Whether to Issue One at All

by Littler on

Most all major U.S. employers, and many smaller ones, have issued and periodically update employee handbooks—staff guides explaining how the organization’s particular workplace works. U.S. human resources experts almost...more

Veil Piercing/Alter Ego Determinations – How Fund Managers Can Protect Themselves

A veil piercing claim can be a worst-case scenario for a private fund manager dealing with a struggling portfolio company investment – the company fails, and ensuing legal claims are brought not only against the portfolio...more

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

Comprehensive FAQs For Employers On Hurricanes And Other Workplace Disasters

by Fisher Phillips on

This list of frequently asked questions was originally prepared by the law firm of Fisher Phillips in 2005, in response to Hurricanes Katrina, Rita and Wilma. It has been updated several times over the course of the past 12...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

Two-Minute Warning: Preparing for a Possible Government Shutdown

In May, President Trump tweeted: the “country needs a good shutdown in September.” That prospect is now upon us. For Government contractors, the fallout from a threatened shutdown—let alone an actual one—ranges from...more

Reparando los Daños: Las Responsabilidades del Empleador como Consecuencia del Huracán Harvey

by Littler on

El huracán Harvey está inundando implacablemente el sureste de Texas y las áreas aledañas, resultando en inundaciones y daños sin precedentes. A medida que la tormenta se agrava, muchos empleadores se han preguntado cómo...more

Picking Up the Pieces: Employer Responsibilities in the Aftermath of Hurricane Harvey

by Littler on

Hurricane Harvey is relentlessly drenching southeast Texas and the surrounding areas, resulting in unprecedented flooding and damage. As the storm rages, many employers are wondering how to respond and what happens next....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

“It Wasn’t Me!” – Sixth Circuit Rules that Management Consultant Wasn’t Joint Employer under the WARN Act

Can your consultant-consultee relationship with an employer who allegedly violates the Worker Adjustment and Retraining Notification (WARN) Act subject you to liability as well? Not according to the U.S. Court of Appeals for...more

Third Circuit Holds No Need to Warn Under WARN ACT Unless Circumstances Causing Layoff Are Probable

by Dechert LLP on

The Worker Adjustment and Retraining Notification (WARN) Act in the U.S. requires that employers give sixty days’ notice to its employees before effecting a mass layoff. The WARN Act contains exceptions to the notice...more

WEB EXCLUSIVE: Supreme Court Review: Mixed Bag For Employers

by Fisher Phillips on

The 2016-17 Supreme Court term was truly a mixed bag for employers. The Court limited presidential power, reined in the appellate courts’ authority to review and overturn trial court decisions regarding EEOC subpoenas,...more

US Supreme Court confirms priority rules apply to a structured dismissal of a chapter 11 bankruptcy case

by DLA Piper on

In its recent decision Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973 (2017), the United States Supreme Court held that a bankruptcy court may not approve a structured dismissal of a chapter 11 case that provides for...more

Exculpatory Provisions Under Delaware Law: Say What You Mean And Mean What You Say

Exculpation provisions in operating agreements must be carefully crafted in order to protect members, managers, directors and officers for breaches of fiduciary duties...more

Bankruptcy courts cannot approve structured dismissal of Chapter 11 case that violates absolute priority rule

by Snell & Wilmer on

In Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973 (2017), the U.S. Supreme Court held that a bankruptcy court was not authorized to approve a structured dismissal of a Chapter 11 case that violated the absolute priority...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

The Jevic Fallout: Settlement DENIED

In one of the first of many cases to determine the scope of the Supreme Court’s recent decision in Jevic, the Bankruptcy Court for the Eastern District of Tennessee denied a proposed settlement by the Debtor that the court...more

Back Back Back Back Back and That Job is Gone!

ESPN is generally known as the worldwide leader in sports. This week, however, they were in the news for a reason that didn’t involve reporting on deflated balls, two people yelling at each other over a topic no one generally...more

High Court Rules Final, Nonconsensual Structured Dismissals Invalid

The Bankruptcy Code contemplates that a Chapter 11 bankruptcy case will be concluded in one of three ways: a confirmed Chapter 11 plan, a conversion to Chapter 7 for liquidation of remaining estate assets, or a dismissal of...more

Priority is Paramount: Supreme Court Holds Structured Dismissals Cannot Violate Bankruptcy Code’s Established Priorities

by Allen & Overy LLP on

On March 22, 2017, the United States Supreme Court (the Supreme Court) in In re Jevic Holdings Corp. held that a final disposition of estate funds cannot violate the Bankruptcy Code’s priority system by distributing value to...more

Keep On Truckin’: Priority Rules Still Rule in Structured Dismissals

In 2015, Distressing Matters reported on the Third Circuit’s decision in In re Jevic Holding Corp., wherein that panel ruled that, in rare circumstances, bankruptcy courts may approve the distribution of settlement proceeds...more

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