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    Bankruptcy Doesn’t Shield Employees from WARN Act Layoff Notice Requirements—Unless an Exception Applies
    2022-11-16

    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).

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Levenfeld Pearlstein LLC, Bankruptcy, Worker Adjustment and Retraining Notification Act 1988 (USA)
    Authors:
    Elizabeth (Lisa) Vandesteeg , Laura B. Friedel
    Location:
    USA
    Firm:
    Levenfeld Pearlstein LLC
    Decision in Tweeter Opco, LLC., holds non-debtor controlling company liable for debtor's violation of the WARN Act
    2011-08-03

    Summary

    In a 24 page decision signed July 8, 2011, Judge Walrath of the Delaware Bankruptcy Court granted a motion to for summary judgment, holding a non-debtor defendant liable with the Debtor as a single employer for alleged WARN Act violations. Judge Walrath’s opinion is available here (the “Opinion”).

    Background

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Fox Rothschild LLP, Bankruptcy, Debtor, Class action, Federal Reporter, Limited liability company, Good faith, Summary offence, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, Third Circuit
    Authors:
    L. John Bird
    Location:
    USA
    Firm:
    Fox Rothschild LLP
    Doing Business in the United States 2020
    2020-03-13

    The Labor and Employment Group at Hogan Lovells is proud to have contributed to the 2020 version of the firm’s Doing Business in the United States Guide. The Guide provides a high-level overview of the laws and practices important to foreign investors interested in operating in the United States, including recent legal developments.

    Filed under:
    USA, Company & Commercial, Competition & Antitrust, Copyrights, Corporate Finance/M&A, Designs and trade secrets, Employment & Labor, Immigration, Insolvency & Restructuring, Patents, Public, Tax, Trade & Customs, Trademarks, White Collar Crime, Hogan Lovells, Foreign direct investment, Value added tax, Board of directors, Limited liability company, Limited liability partnership, Money laundering, Sexual harassment, Age discrimination, Internal Revenue Service (USA), Occupational Safety and Health Administration (USA), Federal Trade Commission (USA), Office of Foreign Assets Control (USA), Financial Crimes Enforcement Network (USA), US Department of the Treasury, Foreign Investment Review Board, US DoJ Antitrust Division, Committee on Foreign Investment in the United States, NAFTA, Bureau of Economic Analysis, Civil Rights Act 1964 (USA), Export Administration Regulations (USA), Family and Medical Leave Act 1993 (USA), Americans with Disabilities Act 1990 (USA), Foreign Corrupt Practices Act 1977 (USA), Worker Adjustment and Retraining Notification Act 1988 (USA), Pregnancy Discrimination Act 1978 (USA), Clayton Antitrust Act 1914 (USA), USA PATRIOT Act 2001, Equal Pay Act 1963 (USA), Uniform Commercial Code (USA), General Agreement on Tariffs and Trade, National Labor Relations Act 1935 (USA), USMCA
    Location:
    USA
    Firm:
    Hogan Lovells
    Did Jevic Doom Future Chapter 11 Recovery Efforts By Unsecured Creditors?
    2018-12-03

    A majority of today’s large Chapter 11 cases are structured as quick Section 363 sales of all the debtor’s assets followed by confirmation of a plan of liquidation, dismissal of the case, or a conversion to a Chapter 7. The purchaser in the sale is often one of the debtor’s prepetition secured or undersecured lenders, which may also act as the debtor-inpossession (DIP) lender and purchase the debtor’s assets through a credit bid, with no cash consideration.

    Filed under:
    USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Secured creditor, Debtor in possession, Internal Revenue Service (USA), Worker Adjustment and Retraining Notification Act 1988 (USA), Supreme Court of the United States, United States bankruptcy court, Third Circuit, US District Court for District of Delaware
    Authors:
    Norman N. Kinel , Nava Hazan
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Foreseeable Circumstances - Third Circuit Shuts Down WARN Act Claim After Russian Financing Fails
    2017-10-02

    The Bankruptcy Protector

    Chapter 11 debtors operate under various levels of uncertainty. Often a company is dependent upon others to provide financing or close transactions necessary for the company’s survival. Such was the case of Eclipse Aviation, which filed for Chapter 11 bankruptcy in November 2008, with an (apparent) agreement to sell itself to its largest shareholder.

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Nelson Mullins Riley & Scarborough LLP, Class action, Worker Adjustment and Retraining Notification Act 1988 (USA), Third Circuit
    Authors:
    Dylan Trache
    Location:
    USA
    Firm:
    Nelson Mullins Riley & Scarborough LLP
    The Third Circuit Weighs in on The Warn Act
    2017-09-18

    Short Summary

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Cole Schotz PC, Worker Adjustment and Retraining Notification Act 1988 (USA), Code of Federal Regulations, Third Circuit
    Authors:
    Myles R. MacDonald
    Location:
    USA
    Firm:
    Cole Schotz PC
    Third Circuit Applies More Flexible Standard for WARN Exemption
    2017-08-24

    The Bottom Line:

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Worker Adjustment and Retraining Notification Act 1988 (USA), Third Circuit
    Authors:
    Megan M. Wasson
    Location:
    USA
    Firm:
    Kramer Levin Naftalis & Frankel LLP
    United States: Third Circuit Court of Appeals Clarifying When Debtor Is Excused From WARN Act Notice Requirements Under “Unforeseen Business Circumstances” Exception
    2017-08-16

    Summary

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Baker McKenzie, Shareholder, Independent contractor, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, Third Circuit
    Authors:
    Robert P. Lewis
    Location:
    USA
    Firm:
    Baker McKenzie
    Third Circuit Holds No Need to Warn Under WARN ACT Unless Circumstances Causing Layoff Are Probable
    2017-08-17

    The Worker Adjustment and Retraining Notification (WARN) Act in the U.S. requires that employers give sixty days’ notice to its employees before effecting a mass layoff.

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Dechert LLP, Worker Adjustment and Retraining Notification Act 1988 (USA), Third Circuit
    Location:
    USA
    Firm:
    Dechert LLP
    Mass Layoffs When Section 363 Sales Fail and Cases Convert: Third Circuit Adopts Probability Standard for WARN Act Liability
    2017-08-14

    On August 4, 2017, the Third Circuit Court of Appeals issued its ruling in Varela v. AE Liquidation, Inc. (In re AE Liquidation, Inc.), 2017 U.S. App. LEXIS 14359 (3d Cir.

    Filed under:
    USA, Employment & Labor, Insolvency & Restructuring, Litigation, Squire Patton Boggs, Debtor, Liquidation, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, Third Circuit
    Authors:
    Elliot M. Smith
    Location:
    USA
    Firm:
    Squire Patton Boggs

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