Employers who have been using a natural-disaster exception as a defense of abrupt layoffs related to the COVID-19 pandemic received unwelcome news from a U.S. appellate court.

The U.S. Court of Appeals for the Fifth Circuit has ruled that COVID-19 does not qualify as a natural-disaster exception under the Worker Adjustment and Retraining Notification Act, which requires a 60-day notification in advance of plant closings and mass layoffs.