To WARN or Not to WARN [American Bankruptcy Institute Unsecured Trade Creditors Committee Newsletter]

A company in serious financial distress should consider the implications of the WARN Act in the event that it is forced to cease operations.  Simon Fraser, a member of Cozen O'Connor's Bankruptcy, Insolvency & Restructuring group, discussed the WARN Act, and the “unforeseeable business circumstances” defense to liability, at length in an American Bankruptcy Institute Journal article.  Simon explained that the WARN Act requires companies with 100 or more employees to provide affected workers with at least 60 days’ prior notice of a mass layoff or plant closure.  However, a company may be protected from liability if the layoffs or closures were the result of unforeseeable business circumstances.  To learn more about the WARN Act from Simon, click here.

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Simon E. Fraser


(302) 295-2011

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