Employment-Second Circuit Rules That A Company Which Operates An Entity Could Be Considered A “Single Employer” With That Entity And Thus Be Liable For That Entity’s WARN Act Violations

In Guippone v. BH S&B Holdings LLC, Docket No. 12‐183‐cv (2nd Cir. 2013), the Second Circuit Court of Appeals (the “Court”) faced the issue of who is liable for violations of the Worker Adjustment Retraining and Notification Act (“WARN”).

In this case, the Court ruled that: (1) the district court had correctly determined that the defendants who are private equity funds were investors, not “single employers”, with their subsidiary within the meaning of WARN, and therefore could not be liable for the subsidiary’s WARN violations, and (2) the district court erred in granting summary judgment to BHY S&B Hold Co, LLC (“BHY”), which operated the entity the plaintiff worked for, because the plaintiff raised a question of material fact as to whether BHY was a “single employer” with that entity, and thus could be liable for that entity’s WARN violations.