The federal Worker Adjustment Retraining Notification Act (the WARN Act), generally requires that employers give workers 60 days’ written notice of any plant closings or mass layoffs. If employers do not comply with this requirement, then workers can recover backpay.
A recent decision from the United States Bankruptcy Court for the District of Delaware addressed
Employees who sue their employers must disclose that lawsuit if they file for bankruptcy—right? Maybe not. In Slater v. U.S. Steel Corp., the Eleventh Circuit overruled prior precedent and impaired a valuable defense for early dismissal or settlement with bankrupt plaintiffs. This decision will affect strategy for employers that face litigation from bankrupt plaintiffs.