Be Forewarned: WARN Act Obligations Are Not Easily Avoided

Law360, New York (August 16, 2016, 1:02 PM EDT) -- Employers considering reductions in force or the purchase (or sale) of another entity have typically remained mindful of their obligations under the Worker Adjustment and Retraining Notification Act, although court decisions addressing and exploring the application of the act have generally remained sparse. In July 2016, the U.S. Court of Appeals for the Eighth Circuit issued one of the few WARN Act opinions of this year. In Day v. Celadon Trucking Services Inc., the Eighth Circuit held that the purchaser of a business was responsible under the WARN Act for providing notice of a mass layoff to employees, even though the sales agreement characterized the transaction as a sale of assets and further stated that the seller — not the buyer — was responsible for providing the WARN notice. This case serves as an important reminder that companies cannot contract out of WARN Act obligations where the operative facts fall squarely within WARN's purview....

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