4th Circ. Ruling Offers Guidance On Scope Of WARN Act

By Douglas Brayley, Greg Demers and David Travis (December 14, 2021, 4:51 PM EST) -- On Nov. 30, the U.S. Court of Appeals for the Fourth Circuit clarified the circumstances under which a company may be held liable under the Worker Adjustment and Retraining Notification Act when its actions cause its independent contractors to undertake mass layoffs of the contractors' employees.[1]

This decision adds to the growing body of case law in support of the U.S. Department of Labor's five-factor test for determining whether two entities should be treated as joint employers for purposes of the WARN Act. It also provides important lessons for investors, parent corporations and enterprises that rely on third-party service providers on...

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