American Meat Packing Corp., 362F.3d 418 (7th Cir. 2004).
On November 15, 2001, 350 workers at the American Meat Packing Corporation (AMPC) showed up for work and were told they had been terminated. Because they were not notified 60 days prior to termination, the Worker Adjustment and Retraining Notification Act, U.S.C. § 2101-2109, the WARN Act, did not apply. The purpose of the 1989 WARN Act was to create a buffer for workers who anticipate mass layoffs or plant closings that have been unanticipated. Under the WARN Act, the 60 day notice of plant closings or any mass layoffs may be waived or reduced if a business closure is "caused by some sudden, dramatic, and unexpected action or condition outside the employer's control." 20 C.F.R. § 639.9(b)(1).
The fundamental issue of this case is that of foreseeability. Business situations that are likely to cripple or close a firm may be considered foreseeable if the "probability of occurrence" is such that it makes the circumstance "reasonably foreseeable" rather than a "mere possibility." Watson 311 F.3d at 765 (quoting Halkias v. Gen. Dynamics Corp., 137 F3d 333, 356 (5th Cir. 1998). The plant's closure was reasonably foreseeable because of 39 Non-compliance Records (NR) were issued in 2001 to AMPC, and the company was operating at a loss due to chronic efforts to improve the plant and the loss of enormous quantities of meat that the USDA required to be destroyed. The test is whether another business person would, under similar circumstances, Hotel Employees and Rest. Employees Int'l Union Local 54 v. Elsinore Shore Assocs., 173 F.3d 175, 180 (3d Cir.1999); 54 Fed.Reg. 16,062, 16,062-63 (April 20, 1989) and 20 C.F.R. § 639.9(b)(2) (2004) determine that the corrective actions over the course of a year were insufficient to meet compliance with USDA regulations, and that the number of citations were inordinately high for a business in which public safety is a primary concern. The plant manager could reasonably be expected to anticipate the plant closure in the very near future.
2. Meridian Rail Company, 479 F.3d 527 (7th Cir. 2007).
Workers were not immediately hired by Nortrak, the company that purchased the assets of the Meridian Rail Company, and this delay brought the suit under the Worker Adjustment and Retraining Notification Act of 1988, 29 U.S.C. § 2101-09. The reach of the WARN Act applied to Meridian as it had 100 or more workers at one location and it did cause loss of employment to 50 or more workers. The plaintiffs argue that the issue is the number of people who lost jobs on December 31, 2003, not the difference between the terminated and rehired workers. Putting the other provisions aside, 29 U.S.C. § 2101(b)(1), states that, "Notwithstanding any other provision of this Act, any person who is an employee of the seller & #8230;as of the effective date of the sale shall be considered an employee of the purchaser immediately after the effective date of the sale." This clause is key to Meridian's position since fewer than 50 applicants were not hired by Nortrak, no "employment loss" occurred. The mode the transaction (sale of assets, merger, or sale of securities) is not important. Smullin v. Mity Enterprises, Inc., 420 F.3d 836 (8th Cir.2005), holds that the form of the transaction does not matter when a plant is sold as a going concern. Cf. Oil, Chemical & Atomic Workers v. Uno-Ven Co., 170 F.3d 779, 783-84 (7th Cir.1999). Regardless, the plaintiffs argue that the actual sale of the plant did not occur until January 8, 2004, well after the "employment termination" within the meaning of § 2101(a)(6)(A) which occurred on December 31, 2003, and that the statutory "plant closing" left 50 people without jobs. At the Chicago Heights plant on January 8, 2004, the number of workers employed by Meridian was zero. Under The WARN Act, employee entitlements are determined on actual events, rather than assumed ones, and bright lines are drawn. With the delayed closing, Meridian found itself on the wrong side of a bright line.
3. Blair v. Henry Filters, 505 F.3d 517 (6th Cir. 2007).
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