Employment law case analysis – case 6
Arthur Andersen had 27,000 employees in the U.S. prior to the collapse of Enron. When the SEC investigated Enron, it discovered that the Houston office of Andersen, which worked for Enron, shredded thousands of documents related to the investigation. The Department of Justice indicted Andersen for obstructing justice. Many clients quit using Andersen, so its revenues collapsed. Consequently, Arthur Anderson laid-off large numbers of employees. A group of employees sued, contending that Andersen violated the Worker Adjustment and Retraining Notification Act (WARN) by not providing 60 days notice.
The Worker Adjustment and Retraining Notification Act (WARN) was enacted to protect employees, their families and their communities by requiring that organizations with a hundred or more employees provide a notice to the employees of not less than sixty days before closing the organization. The notice is supposedly supposed to be presented to either the employees or their representatives. It should also be distributed to the appropriate government…