Judge Smith from the 9th Circuit just recently held that if an employee leaves a job because the business is closing, that employee has not “voluntarily departed” within the meaning of the WARN Act. Instead, there was an “employment loss.” Michael Subit successfully argued the case on behalf of Frank, Freed, Subit & Thomas, LLP.
The WARN Act is a law that requires an employer to order a plant closing or layoff only after “warns,” or gives written notice, to each affected employee. 29 U.S.C. § 2102(a). If the employment loss is for 50 or more employees, then the notice must be 60 days. If you have additional questions about the law, ask a lawyer.
This case is good news for workers. If you are working at business that is about to lay off a lot of workers, then you may be able to quit before the losses actually happen.
You may have more time to find a new job!