California Labor Law: Court Announces another Favorable Decision for Employees
The Warn Act was bolstered by a recent case in the Ninth District Collins v. Gee West Seattle. In this case, the court addressed voluntary resigning of employees after such employees learn that operations of the employer are to cease and whether or not such resignation should be considered an “employment loss” under the Warn Act. The court decided in favor of the employees, thereby entitling them to 60 days of wages under the Warn Act. The court noted the employer only gave a few weeks notice under the faltering business provision of the Warn Act which typically allow 60 days notice to employees. Once the employer notified the employees that it was seeking a buyer for the business, many employees resigned and began seeking employment elsewhere. These same employees sued the employer for violations of the Warn Act arguing that they are entitled to wages under the Warn Act. The employer disputed the claim and took the position that since the employees quit, they are not entitled to monies under the Warn Act. Initially, a district court agreed with the employee, however the Ninth Circuit Court reversed this decision. The court opined that once the employer reasonably foresees a significant employment loss, this triggers protection of the Warn Act. In this instance, although the employer had such foresight, it failed to provide at least the 60 days required under the Act. The fact, that the employees resigned, did not release the employer from its obligations under the Warn Act.
If you have been faced with layoff contact a California labor law attorney to examine your rights. You can reach us directly at: (619) 342-1242
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