Judicial devitalization of the WARN Act?

Article Abstract:

There have not been more than 24 cases since the enactment of the Worker Adjustment and Retraining Notification Act of 1988 (WARN), but these indicate a judicial willingness to weaken the act by allowing employers to take advantage of three loopholes. Employers can make unannounced shutdowns when 'unforeseen business circumstances' intervene. Employers can escape liability for the same act when they are deemed to have acted in good faith. Allowing businesses to hide behind the corporate veil is a third loophole. The courts might to well to impose shareholder liability under the WARN law.

Analysis, Plant shutdowns, Notice (Law), Good faith (Law), Disregard of corporate entity, Disregarding corporate entity

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In search of the summary plan description: judicial conflicts abound

Article Abstract:

ERISA requires that a pension plan have a 'summary plan description' (SPD) but fails to define what constitutes an SPD, and federal court opinions on this issue have varied. The 5th Circuit issued the most recent holding in Hicks v Fleming Cos, one which favored the plan administrator. The court ruled that an SPD which covered the items in ERISA Section 1022(b) would suffice. Employers should be careful not to give the impression that an SPD contains all key information and to refer participants to more detailed sources.

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The Retirement Protection Act

Article Abstract:

The recently enacted Retirement Protection Act should help to address the problem of pension underfunding. The reforms included in the act cover accelerated funding for the most severely underfunded plans; increased premiums for underfunded plans; enhanced compliance tools, including an annual reporting requirement; an early warning system; and notice to participants about underfunded pensions and the guarantees provided by the Pension Benefit Guaranty Corp.

United States, Powers and duties, United States. Pension Benefit Guaranty Corp.

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