Workers surprised by shutdowns may have little recourseDecember 5, 2007
Ian D. Meklinsky recently lent his view to "Workers surprised by shutdowns may have little recourse," a Baltimore Sun article that appeared on December 5, 2007. In his article, journalist M. William Salganik discussed abrupt business shutdowns and the Worker Adjustment and Retraining Notification Act – or WARN Act.
The WARN Act requires business to provide notice to employees about a business shutdown, but there are many exemptions built into the act.
In discussing the exemptions, Meklinsky said, "‘A company that’s out there trying to drum up a buyer or drum up a capital infusion’ is exempt from the notice requirement because a shutdown notice could short-circuit those attempts to save the business… ‘This gets litigated frequently within bankruptcy.’"