Megan K. Mechak
Tue, 08/09/2022
Rosen Hotels and Resorts Inc. has agreed to pay $2.3 million to settle Worker Adjudgment and Retraining Notification (“WARN”) Act claims brought by former employees who were laid off during early days of the COVID-19 pandemic. The named plaintiff, Yolanda Turner, alleged that Rosen failed to notify her and other employees in advance that they would be laid off, as required by the WARN Act. The parties agreed that 3,631 employees were affected by the layoffs.
The WARN Act is a federal law that requires employers with one hundred or more employees to provide sixty days written notice of a plant closing or the mass layoff of more than 50 workers, which includes circumstances where an employee will be furloughed for more than six months. According to the plaintiff, Rosen temporarily furloughed its workers effective April 10, 2020, but failed to recall them within six months.
There are notable exceptions to the WARN Act, however, including natural disasters (where no notice is required) and “unforeseeable business circumstances” (where only as much notice “as is practicable” is required). Rosen alleged that the furloughs were due to a natural disaster (the COVID-19 pandemic), so no notice was required. At the time the plaintiff filed her suit, and when the parties reached their settlement, no appellate court had addressed whether the “natural disaster” defense applied to COVID-19-related layoffs. As MSE previously reported, the Fifth Circuit ruled in late June that the COVID-19 pandemic is not a “natural disaster” under the WARN Act.
The Court preliminarily approved the settlement on August 2, 2022, with a final approval hearing set for October 5, 2022.
If you believe your lay off violated the WARN Act, contact MSE at info@mselaborlaw.com.
