Automotive News reported that two former employees of Bill Heard Enterprises, Inc. filed a lawsuit claiming that Bill Heard Enterprises did not provide notice of a plant closing or mass layoff as required by the Worker Adjustment and Retraining Notification Act (”WARN”). Under WARN, an employer must give 60-days notice of a plant closing or mass layoff unless it could not reasonably foresee business circumstances that led to the closing. The lawsuit, which was filed in the U.S. District Court for the Northern District of Alabama, seeks to represent all similarly-situated Bill Heard Employees as a class-action.
With dealers caught in the middle of the credit crunch, high gas prices, and declining overall sales, it is likely that many will have to face the difficult decisions with respect to reductions in force or outright closures. These actions raise legal issues that most dealers have never seen, so if you are faced with these actions, you should definitely consult with a good labor lawyer.
Source: Automotive News [sub. required]
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