When a company files for bankruptcy and immediately begins to liquidate its assets and go out of business, it ceases to be an “employer” and therefore cannot be sued under the Worker Adjustment and Retraining Notification (WARN) Act for failing to notify its workers 60 days in advance of a plant closing.
A unanimous panel led by U.S. Circuit Judge Anthony J. Scirica reversed rulings by both the bankruptcy and district courts that held the Newark, N.J.-based non-profit hospital and health care company liable under WARN for $5.1 million in back pay.
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