January 2021
The article “Enterprise WARN Act Ruling Spells Trouble For Big Employers” provided “a preview of how these suits may be handled by federal judges.” The judge refused to dismiss the case on the grounds that COVID 19 was a “natural disaster” under the WARN Act that is exempt from notice.
He found that the economic effects of COVID which cause a business to close are different from a direct hit from a tornado, earthquake or tsunami that renders a company unable to function (and therefore unable to provide WARN notice). The judge instead found that the WARN defense of “unforeseeable business circumstances” might be more germane, but that such an issue was not suitable for a motion to dismiss. Among the experts explaining that decision, the article quoted Raisner Roupinian LLP partner Jack Raisner:
“It’s way too factually intricate and involved,” said Raisner Roupinian LLP co-founder Jack Raisner, who represents workers in mass layoff cases. “The big question is whether courts looking at the evidence will find that these decisions to terminate people could’ve been made earlier or not.” “These are issues for summary judgment or trial,” Raisner said.
Enterprise subsequently settled the case with the employees.