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5th Circuit Finds WARN Act Applies Even During COVID-19 Pandemic

August 16, 2022

Via: SHRM

COVID-19 was not a natural disaster under the WARN Act and thus the natural disaster exemption from the law’s notice requirements did not apply to an employer that said a layoff was due to a downturn caused by unexpected adverse impacts from the coronavirus, the 5th U.S. Circuit Court of Appeals decided.

Oil producers hire US Well Services Inc. to perform hydraulic fracturing services known as fracking. When the price of oil drops below a commercially viable price, oil producers often discontinue work. In early March 2020, oil prices plummeted to historic lows due to a price conflict between Saudi Arabia and Russia. This effect was compounded by a decline in travel and decreased demand for oil during the COVID-19 pandemic.

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