Carl Leeper v. Hamilton County Coal, LLC, et al.
Arbitration ERISA LaborRelations
On February 5, 2016, Hamilton County Coal, LLC
("HCC") notified 158 full-time employees,
approximately 50 percent of its full-time workforce,
that their employment was ending at midnight. A
month later, Carl Leeper filed this class action seeking
relief for HCC's failure to provide 60-days' written
notice under the Worker Adjustment and Retraining
Notification Act, 29 U.S.C. § 2101 et seq. ("WARN Act").
Over the next 6 months, HCC rehired 56 of the 158
affected workers at their prior wages, including 50 that
HCC brought back on August 1, 2016, 5 months and 24
days after the February 5 notice. This case presents
two important questions of federal law, the first of
which has created a split among the circuits:
1. Whether courts should distinguish between
"terminations" and "layoffs" under the WARN
Act by applying an objective standard that
examines the employees' reasonable expectation
of recall at the time of the employment
cessation, based on the employer's written and
oral communications, policies and practices,
industry standards, and other factors.
2. Whether "a reduction in hours of work of more
than 50 percent during each month of any 6month period" under the WARN Act includes
months in which the employee suffers a 100
percent reduction in hours.
Whether courts should distinguish between 'terminations' and 'layoffs' under the WARN Act by applying an objective standard that examines the employees' reasonable expectation of recall at the time of the employment cessation, based on the employer's written and oral communications, policies and practices, industry standards, and other factors