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Article Index » warn and worker dislocation » unforeseeable business circumstance
Report Link Unforeseen Business Circumstances May Relieve Company of WARN Obligation.
Ogletree Deakins - February 12, 2009
The federal Worker Adjustment and Retraining Notification (WARN) Act generally requires that companies of 100 or more employees provide advance notice of plant closings. The purpose of such notice is to allow employees some time to adjust to the prospective loss of employment, and to seek other jobs or retraining. The WARN Act requires 60 days written notice before a closing or mass layoff by covered employers. Companies that violate the Act are liable for back pay and benefits for each day that the required notice is not provided, up to a 60 day maximum.
Report Link Federal Court Finds Employer Not Liable for Sudden Layoff under WARN.
Jackson Lewis LLP - February 05, 2009
An employer satisfied the “unforeseeable business circumstances” exception under the Worker Adjustment and Retraining Notification Act (“WARN”) when it implemented a layoff just days after losing its biggest customer, the federal appellate court in Denver has held. Gross v. Hale Halsell Co., No. 08-5028 (10th Cir. Jan. 20, 2009). WARN’s unforeseeable business circumstances exception applied because the customer’s withdrawal, and the attendant 40 percent loss in potential business, was not reasonably foreseeable, the Court concluded, affirming a lower court’s grant of summary judgment for the employer.

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