Layoffs often accompany corporate bankruptcy, and employers should be aware of the legal obligations that impact mass layoffs and plant closures. Most notably, the federal WARN Act requires employers to notify the workforce of a mass layoff, a temporary shutdown, or a closure of all or part of a business.

Employers that fail to provide adequate notice could be on the hook for damages of back pay and benefits-related compensation per employee for each day the company violated the WARN Act (up to 60 days).

A bankruptcy court judge in Texas recently handed down a ruling that could change the landscape of small business Subchapter V chapter 11 bankruptcy cases. The ruling is one of only a few known cases in the nation in which removal of the debtor-in-possession (DIP) has been sought and granted in a Subchapter V bankruptcy case.

The Consolidated Appropriations Act (CAA), one of the largest bills ever passed by Congress, was signed into law on December 27, 2020.