Tuesday, October 30, 2007
Shutdown plus 60 days wages equals no WARN Act violation
In Long v. Dunlop Sports Group, the Fourth Circuit in an opinion by Judge Motz, joined by Judges King and District Judge Robert Conrad, held that the employer did not violated the WARN when it shutdown without prior notice but continued to pay wages to the plaintiffs for an additional sixty days. The Court concluded "that the employer did not violate the WARN Act because no employee suffered an employment loss as a result of the plant shutdown until 60 days after the employer provided notice of it." The Court also observed: "When an employer commits to continue payment of wages and benefits to its employees, the employment relationship has not ended."