Employees of Paramount Global and CBS Interactive have filed a lawsuit against their employers for allegedly violating the New York Worker Adjustment and Retraining Notification (WARN) Act. Notably, some of the affected workers were located in other states, working remotely for their jobs. The question now lies before the court whether the state WARN Act applies to these remote workers.
Remote Employees Laid Off Without Appropriate Notice
On September 24, 2024, around 350 employees of Paramount and CBS were told their positions would be terminated effective September 30. They would continue to receive pay and benefits until November 25, regardless of whether they signed the separation agreement offered by the company. The employees who were laid off subsequently filed a class action lawsuit claiming the companies had violated the WARN Act by firing them without adequate notice.
The Legal Requirements of the State WARN Act
The New York WARN Act requires employers with 50 or more employees to give their employees at least ninety days’ notice if they intend to engage in mass layoffs. If they fail to give that notice, they must pay for at least sixty days of wages and continue to offer benefits (such as access to employer insurance or paid time off) during that time. A similar federal law requires employers with 100 or more employees to give at least sixty days’ notice.
The Legal Issue in Contention
The primary legal issue regards certain employees who were working remotely out of state at the time of the layoffs. Paramount wanted to argue that the New York State WARN Act did not apply to these remote workers, meaning they were not entitled to the same benefits as those who resided in New York. The workers, meanwhile, contended that it should, and they should be entitled to the same compensation and benefits as anyone else.
The Potential Impact of the Case
The reason this case is so important is due to the growth of remote work over the past few years. More and more employees are working from home, which in turn brings into question whether certain benefits should extend to employees who work remotely. It may also be a sign that certain laws may need to be updated to accommodate this change in the modern working environment.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 44 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
