Trucking Company Found In Violation Of WARN Act

Often times, when a company acquires another company, it does not wish to retain all of the other company’s employees.  The employees who do not get brought on board often end up out of work.  Under these circumstances, issues arise over how to handle the laid off employees.  Federal law requires employers to provide at least 60-days’ written notice prior to terminating employees affected by such a merger.  So who is required to provide the notice, the employees’ current employer or the new company that does not wish to retain them? Under federal law, if the employees remain employed as of the day of the sale, the purchasing company assumes responsibility for providing the required notice.  According to the 8th Circuit, this remains true even where the purchasing company never intended to employ the laid off workers and expressly contracted away the notice obligation when completing the purchase agreement.

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