In an article published on January 5, 2016, Law360 summarized the details of the employment class action case, Morton v. Vanderbilt. Bass, Berry & Sims attorneys Bill Ozier, Michael Moschel, Stephanie Roth and Dustin Carlton represented Vanderbilt in the lawsuit. The case presented an issue of first impression in the Circuit as to when an employment termination occurs under the WARN Act.
In this case, a group of former employees filed the lawsuit alleging that Vanderbilt had violated the Worker Adjustment and Retraining Notification (WARN) Act for failing to provide 60 days' advance notice of their layoffs. The U.S. District Court for the Middle District of Tennessee found in favor of the former employees. However, the Sixth Circuit overturned the district court decision on the grounds that as long as employees continued to receive full wages and accrue benefits while on a paid leave, there is no employment termination until after the employer ceases the pay and benefits.
The full article, "WARN Notice Is Not End of Employment, 6th Circ. Says," was published by Law360 on January 5, 2016 and is available online.