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In the alternative, it also contended that united healthcare system was excused from providing notice under the warn act s faltering company and unforeseeable business circumstances exceptions.
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1999), the third circuit found that a debtor-hospital which had filed a chapter 11 petition in the bankruptcy court sixteen days earlier was a liquidating fiduciary at the time it laid off 1,200 of its 1,300 employees.
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However, in situations where the 60 days advance notice simply is not practicable, employers should strongly consider the financial ramifications of terminating its employees pre-petition versus post-petition.
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This is because employers who believe they may become liquidating fiduciaries of a chapter 11 debtor s estate may avoid warn act liability entirely.
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The best way for an employer to avoid warn act liability is still to provide employees the full 60-days notice prior to the plant closing or mass layoff.
Effect of Amendment The 2013 amendment deleted and reserved former subsection (e), relating to agents. See, now, Section 62-7-602A. SECTION 62-7-602A.
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The bankruptcy court also concluded that the faltering company and unforeseeable business circumstance exceptions did not apply.
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Section 507(a)(3) of the bankruptcy code provides, in pertinent part, that claims earned within 90 days before the date of the filing of the petition or the date of cessation of the debtor s business, whichever occurs first, for (a) wages, salaries, or commissions.
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27 jamesway corporation although the united healthcare system decision provides debtors-in-possession an important defense to warn act claims by employees, employers seeking to take advantage of this defense should be extremely careful in seeking to establish their status as liquidating fiduciaries.
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