Second Circuit Vacates Ruling On WARN Act Notice Claims

On May 15, 2023, the Second Circuit vacated the entry of summary judgment on Worker Adjustment and Retraining Notification Act and New York Labor Law § 860 et seq. (collectively, the "WARN Acts") claims, holding that a reasonable factfinder could conclude that a buffet restaurant operating inside of a casino was considered an operating unit for purposes of the WARN Acts, and was therefore subject to written notice requirements for mass layoffs. The case is Roberts v. Genting New York, LLC, No. 21-833.

Background

In January 2014, Defendant closed a buffet restaurant located inside the Resorts World Casino where Plaintiffs worked. Defendant gave Plaintiffs no notice of the closure, which took effect the same day and resulted in 177 employees being laid off. Plaintiffs then filed a putative class action against Defendant in the United States District Court for the Eastern District of New York, alleging that Defendant's failure to provide notice of the layoffs