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  Drastic Changes to WARN Contemplated in "Forewarn Act" Bill.Jackson Lewis LLP - July 07, 2009 Both houses of Congress have introduced bills that would amend drastically the Worker Adjustment and Retraining Notification Act, the federal law that requires employers to provide at least 60 calendar days’ advance written notice of “plant closings” and “mass layoffs.” The proposed “Federal Oversight, Reform, and Enforcement of the WARN Act” (“Forewarn Act”) not only would increase the number of employers subject to WARN and increase the number of entities and individuals who must receive WARN notices, but also would require employers to provide 90 days of WARN notices, instead of 60, prohibit waivers of WARN rights unless supervised by the U.S. Department of Labor or the attorney general of a state, and create an administrative enforcement scheme in addition to the existing judicial enforcement scheme, giving the DOL the authority to investigate and prosecute alleged WARN violations. Report Link Preparing for Reductions-In-Force by Understanding the WARN Act.Elarbee, Thompson, Sapp & Wilson, LLP. - April 28, 2009 The current state of the economy has affected employers nationwide by causing a widespread recent increase in mass reductions-in-force. In February 2009 alone, 2,769 mass reductions-in-force occurred, which affected 295,000 workers (seasonally adjusted), according to statistics released by the Labor Department. As employers prepare for a reduction-in-force, they must consider the ramifications to minimize their potential for legal liability under the WARN Act. Report Link A WARN Act Refresher Course.Fisher & Phillips, LLP - April 07, 2009 As the steady drumbeat of grim economic news continues, more and more employers are forced to face the unpleasant prospect of laying off valued employees to survive. When times are tough, the last thing a struggling business needs is a class-action lawsuit claiming that the former employees are entitled to 60 days' additional pay under federal or state law. Report Link Fair WARNing for These Harsh Economic Times.Constangy, Brooks & Smith, LLP - March 09, 2009 As this Bulletin went to press, the Dow Jones Industrial Average was below 6700, and approximately 6.5 million people are currently unemployed. Given the dire state of our economy, this appears to be an opportune time to review employer obligations under the federal Worker Adjustment and Retraining Notification Act. Report Link Third Circuit Clarifies the “Faltering Company” Exception to Notice Requirements of the WARN Act.Ogletree Deakins - September 11, 2008 The purpose of the Worker Adjustment and Retraining Notification (WARN) Act is to protect workers by requiring advance notice of plant closings. Such notice allows workers some time to adjust to the prospective loss of employment, and to seek other jobs or retraining. The WARN Act requires generally 60 days’ written notice before a closing or mass layoff by covered employers (typically, those with at least 100 full-time employees at a site). Companies that violate the Act are liable for back pay and benefits for each day that the required notice is not provided, up to the 60 day maximum. Report Link WARN Act Implications of Transactions Affecting Multiple Facilities or Mobile Workers.Buchanan Ingersoll & Rooney PC - January 11, 2008 Corporate transactions involving multiple locations and/or employees who regularly travel or regularly work outside of a fixed office can present complicated issues under the Worker Adjustment and Retraining Notification Act (WARN Act). A recent decision by the Court of Appeals for the Fourth Circuit, Meson v. GATX Technology Services Corp., No. 06-1942 (November 16, 2007), highlights this problem. Report Link WARN Act Protects Entitlement to Compensation, Not Work, Fourth Circuit Rules.Jackson Lewis LLP - November 21, 2007 Faced with a relatively common sale-of-business scenario, the United States Fourth Circuit Court of Appeals in Richmond has ruled that a sporting goods manufacturer did not violate the Worker Adjustment and Retraining Notification ("WARN") Act when it shut down a facility, provided 60 days of notice to affected employees, told employees not to report to work and continued to provide pay and benefits during the next 60 days to all but 22 of the plant's 350 employees. Report Link Construction Workers’ WARN Act Claims Denied: Site of Employment Was Actual Construction Site, not Corporate Headquarters.Ford & Harrison LLP - September 14, 2007 The Ninth Circuit recently affirmed the decision of a federal trial court denying former construction workers’ claims that their termination violated the Worker Adjustment and Retraining Notification (WARN) Act. The Court held that the workers were not covered by WARN because they did not demonstrate that 50 or more laid-off employees worked at a single site of employment. Report Link Intended Sale of Business No Defense to WARN Act Violation.Jackson Lewis LLP - April 24, 2007 The WARN Act requires 60 days notice before terminating employees due to a plant closing. Report Link "WARN Watch--Employers Laying Off Workers Must Follow Notice Requirements"Ballard Rosenberg Golper & Savitt - November 29, 2001 Employers contemplating facility closings or reductions in force as a means of coping with the current business downturn must be aware of their legal obligations under the federal Worker Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. Sections 2101, et seq., and interpretative regulations promulgated by the U.S. Department of Labor, 29 C.F.R. 639.1-10.
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March 11, 2010 Ford & Harrison |
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