WARN Act

St Francis · May 2003

We are in the process of selling a Long Term Care facility. This will be a simple transfer of ownership -- everyone going with the new owner. The facility does have 165 FT employees.

Would the WARN Act apply here? Technically, everyone would be terminated on the same day, however, they would be employed the same day also.

I don't think it applies -- but need some support.

Thanks,

JanH · May 2003

Here is a fact sheet that gives you the information you might be able to use.

[url]http://www.doleta.gov/programs/factsht/warn.htm[/url]

Also, here is the Department of Labor site.

[url]http://www.dol.gov/dol/allcfr/ETA/Title_20/Part_639/toc.htm[/url]

I know it covers manufacturing facilities; however, I do not know if it covers your situation. Perhaps others out there can give you more detail.

vmiller MO · May 2003

The web sites are a good starting point. Generally, if the purchaser is hiring all of the employees of the seller, then WARN should not be triggered. The statute and the regulations also allocate who would have to give notices in the event that notices are required. Normally, the seller is obligated prior to the sale and the purchaser after the sale. The regulations also seem to allow the seller and the purchaser to contractually agree who would be responsible.

You should also be aware that there is a group that specializes is suing employers over WARN violations. It appears to be funded in part by unions and they are active and have excellent attorneys. I strongly suggest that you consult with legal counsel.
Vance Miller
Editor, Missouri Employment Law Letter
Armstrong Teasdale LLP
(314) 621-5070
[email]vmiller@armstrongteasdale.com[/email]

WARN Act

Comments