To WARN or Not to WARN, That is the Issue the Court Faced

By: Ivan L. Kallick
– Daily Journal 

Must a financially troubled employer, anticipating that a sale of its business will solve its financial problems, give federally mandated layoff notices to its employees? And, having decided not to give the notices, what happens to the employer when the sale fails to close? To WARN or not to WARN, that is the issue that faced the U.S. Bankruptcy Court for the District of Delaware in Annette Varela etc. v. Eclipse Aviation Corporation (AE Liquidation Inc.), 09-50265 (Nov. 18, 2014). The matter is presently pending appeal in federal district court in Delaware.

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