Tuesday, July 25, 2006

WARN Act doesn't apply when the government orders a layoff

When the federal TSA assumed the security screening operations at San Jose, California airport, Globe Aviation Security Services laid off a number of employees previously performing security checks there. Employees brought a class action claiming the federal WARN Act required Globe to provide 60 days' notice of the layoff. Not so, says the Ninth Circuit, in Deveraturda v. Globe Aviation Security Services. The court held that the WARN Act applies only when the "employer" orders the layoff. In this case, the federal government's legislation federalizing airport security mandated Globe's activities.