LawWorld417_NE_06

We will layoff our Head of Production Sarah Rodriguez as part of the upcoming merger. Please review Section IV of Sarah's layoff and WARN Notice and let me know if the language violates WARN. Answer to me right back here.

The language in the WARN notice presents issues regarding potential remedies. The WARN Act (specifically 29 U.S.C. § 2104(a)(2)) allows employers to reduce their liability for back pay by any "voluntary and unconditional payment by the employer to the employee[s] that is not required by any legal obligation."  

Severance payments can only offset WARN Act damages if the employer was not already obligated to make that payment by a pre-existing contract or law. Since the notice states the severance "will be as outlined in your employment agreement," it is a pre-existing obligation and cannot be used as an offset for any WARN liabilities.

Additionally, the notice includes problematic language regarding healthcare continuation. The health coverage statement says that health care coverage continues "unless changes in plan eligibility occur earlier as a result of restructuring." This is vague and could misrepresent employees' rights. The employer cannot unilaterally terminate this right based on internal "restructuring."