Businesses large and small have been affected by the coronavirus crisis. It seems that no industry has been spared economic hardship. As many states prepare to reopen their economies, there are some businesses that will not be able to resume operations—it is too little, too late. Even with massive spending by the federal government to counteract the economic downturn, it appears that a large number of business bankruptcies may be on the horizon.

Rea v. Federated Investors, 2010 WL 5094250 (3d Cir., December 15, 2010) – The Third Circuit Court of Appeals has ruled that a provision in the Bankruptcy Code which prohibits private employers from “terminat[ing] the employment of, or discriminat[ing] with respect to employment” against an individual who had previously declared bankruptcy, doesnot create a cause of action against a private employer who declines to hire based upon an applicant’s previously declared bankruptcy. Analyzing the bankruptcy provision at issue, 11 U.S.C.

In re: Dewey & LeBoeuf LLP, No. 12-12321 (MG) (S.D.N.Y. Bankr., April 10, 2014): As part of the bankruptcy proceedings involving Dewey & LeBoeuf LLP, the U.S. Bankruptcy Court for the Southern District of New York struck Dewey’s defenses to claims brought by its former employees under the federal and New York State WARN Acts. On May 10 and May 14, 2012, Dewey provided letters to its employees warning that their employment could be terminated due to the firm’s financial condition.

InLewis v. Eberle & BCI Services, LLC, 2013 WL 4483529 (D.N.J. Aug. 19, 2013), a New Jersey district court dismissed the plaintiff’s claims brought under the Americans with Disabilities Act and the Family and Medical Leave Act because she failed to disclose them as “assets” in a simultaneous bankruptcy proceeding. The plaintiff was engaged in Chapter 7 bankruptcy proceedings when she filed suit against her former employer, but she did not revise her bankruptcy petition to identify those claims.

The Friday, October 10, 2008, edition of The State newspaper (Columbia, South Carolina) carried an article about the possible Wells Fargo-Wachovia merger. The article stated the merger could cause “major job cuts.” In an economic downturn such as the current one, employees are going to suffer job losses. Any employment attorney will tell you that will result in more employment-related lawsuits being filed by former employees against their former employers. Any bankruptcy attorney will tell you that will result in increased bankruptcy filings.