X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MEMORANDUM & ORDER On January 14, 2014, plaintiffs Gerald Roberts, Stephen Johnson, Christopher McLeod, and David Shaw, on behalf of themselves and all others similarly situated, commenced this action against defendant Genting New York LLC, d/b/a Resorts World Casino New York City (“Resorts World”), alleging violations of the Worker Adjustment and Retraining Notification Act (“WARN Act”), 29 U.S.C. §§2101, et seq., and New York Labor Law (“NYLL”) §§860, et seq. (“N.Y. WARN Act”). Compl. 1, Dkt. 1. On March 17, 2014, plaintiffs filed an Amended Complaint, adding 59 new plaintiffs. Am. Compl., Dkt. 5. Before the Court are the parties’ cross motions for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. Dkt. 53, 61. For the reasons set forth below, plaintiffs’ motion for summary judgment is DENIED and Resorts World’s cross motion for summary judgment is GRANTED. BACKGROUND I. Statutory and Regulatory Framework Congress enacted the federal WARN Act to protect workers, their families, and communities by requiring employers to provide advance notice before plant closings and mass layoffs. 20 C.F.R. §639.1(a). Such advance notice “provides workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain alternative jobs and, if necessary, to enter skill training or retraining that will allow these workers to successfully compete in the job market.” Id.; see Guippone v. BH S & B Holdings LLC, No. 09-CV-1029 (CM), 2010 WL 2077189, at *2 (S.D.N.Y. May 18, 2010), aff’d, 737 F.3d 221 (2d Cir. 2013). A business enterprise with 100 or more full time employees qualifies as an “employer” under the federal WARN Act. 29 U.S.C. §2101(a)(1)(A). An employer must provide a 60-day written notice to each affected employee or their representative before a plant closing or mass layoff. 29 U.S.C. §2102(a)(1). If an employer orders a plant closing or mass layoff without giving the required notice, the employer is liable to each affected employee for back pay and benefits for the period of the violation, up to a maximum of 60 days, but in no event for more than one-half the number of days the employee was employed by the employer. 29 U.S.C. §2104(a)(1). A “plant closing” means “the permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment, if the shutdown results in an employment loss at the single site of employment during any 30-day period for 50 or more employees excluding any part-time employees.” 29 U.S.C. §2101(a)(2) (emphasis added). The regulations define an “operating unit” for purposes of the WARN Act as “an organizationally or operationally distinct product, operation, or specific work function within or across facilities at a single site.” 20 C.F.R. §639.3(j). The Department of Labor (“DOL”), when promulgating these regulations, explained that “[t]he reason for the use of the term ‘operating unit’ in WARN is to apply the protections of the law to small units of workers in a larger plant when their units are closed.” Analysis of Final Rule and Comments to Section 639.3(j), 54 Fed. Reg. 16051 (1989). Indeed, the DOL stated, “[i]t is not relevant to this purpose whether the workers are production workers or support workers; their job loss and their need for protection is as real in either case.” Id. The DOL further explained that “[t]he critical factor in determining what constitutes an operating unit will be the organizational or operational structure of the single site of employment” and that “[s]ources of evidence which will assist in defining separate and distinct units will be applicable collective bargaining agreements, the employer’s organizational structure and industry understandings of what constitutes distinct work functions.” 54 Fed. Reg. 16050. The N.Y. WARN Act is similar to the federal WARN Act, with several key differences. First, the N.Y. WARN Act “sets a lower trigger threshold for its protections.” 1199 SEIU United Healthcare Workers E. v. S. Bronx Mental Health Council, Inc., No. 13-CV-2768 (JGK)(JCF), 2013 WL 6003731, at *2 (S.D.N.Y. Nov. 13, 2013), report and recommendation adopted, 2013 WL 6244716 (S.D.N.Y. Dec. 3, 2013). Specifically, an “employer” is defined as a business enterprise with 50 or more full time employees, as opposed to 100 or more, and a “plant closing” is defined as the permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment, if the shutdown results in an employment loss during any 30-day period for 25 or more full time employees, as opposed to 50 or more. NYLL §860-a(3), (6). Next, the notification requirements under the N.Y. WARN Act are stricter, requiring an employer to provide a 90-day written notice — as opposed to a 60-day notice — to each affected employee and their representative before a plant closing or mass layoff. NYLL §860-b(1). “Given these stricter requirements, wherever there is liability under the federal WARN Act, there is necessarily liability under the N.Y. WARN Act.” 1199 SEIU United Healthcare Workers E., 2013 WL 6003731, at *2. II. Facts and Procedural History1 Resorts World operates a casino in Queens, New York that offers thousands of games and a variety of food and beverage options. Def.’s Rule 56.1 Statement of Undisputed Material Facts (“SOF”)

1, 3, Dkt. 65; Pls.’ Response to Def.’s Rule 56.1 SOF

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
April 25, 2024
Dubai

Law firms & in-house legal departments with a presence in the middle east celebrate outstanding achievement within the profession.


Learn More
April 29, 2024 - May 01, 2024
Aurora, CO

The premier educational and networking event for employee benefits brokers and agents.


Learn More

A large and well-established Tampa company is seeking a contracts administrator to support the company's in-house attorney and manage a wide...


Apply Now ›

We are seeking an attorney to join our commercial finance practice in either our Stamford, Hartford or New Haven offices. Candidates should ...


Apply Now ›

We are seeking an attorney to join our corporate and transactional practice. Candidates should have a minimum of 8 years of general corporat...


Apply Now ›
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
04/08/2024
Daily Report

Daily Report 1/2 Page Professional Announcement 60 Days


View Announcement ›