Frymire v. Ampex Corp.

858 F. Supp. 1081, 9 I.E.R. Cas. (BNA) 513, 1994 U.S. Dist. LEXIS 14254, 1994 WL 392323
CourtDistrict Court, D. Colorado
DecidedJanuary 7, 1994
DocketCiv. A. 91-S-1858
StatusPublished
Cited by4 cases

This text of 858 F. Supp. 1081 (Frymire v. Ampex Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frymire v. Ampex Corp., 858 F. Supp. 1081, 9 I.E.R. Cas. (BNA) 513, 1994 U.S. Dist. LEXIS 14254, 1994 WL 392323 (D. Colo. 1994).

Opinion

ORDER

SPARR, District Judge.

THIS MATTER came on for trial before the Court on May 25, 1993. The Plaintiffs assert a claim under the Worker Adjustment and Retraining Notification Act [hereafter the WARN Act], 29 U.S.C. § 2101 et seq. The WARN Act is designed (among other things) to provide workers with prior notice of plant closings or relocations so that the workers may be able to plan their employment future accordingly. It provides protection to workers, their families, and communities by requiring employers to provide notification sixty calendar days in advance of plant closings and mass layoffs. 20 C.F.R. § 639.-1(a). It requires notification to employees who, as part of a mass layoff or plant closing, suffer employment loss. 29 U.S.C. § 2101(a). In order to assert a claim under the WARN Act, Plaintiffs here must meet the statutory threshold number (at least fifty employees who comprise at least 33% of the workforce), at a single site of employment. 29 U.S.C. § 2101(a)(3)(B). The Plaintiffs in this action were employees of the Defendant at the Video Systems Corporation, and were laid off between November 1990 and January 1991.

I. Procedural History

The Defendant had previously filed a motion for summary judgment July 14, 1992. That motion was denied in part and granted in part, in an order dated September 14, 1992. In that order, the Court held that the Plaintiffs had met the requisite 33% threshold for maintaining their WARN Act suit as to the Video Systems facility, but failed to reach the threshold as to the Recording Systems facility. The Court denied the Defendant’s motion for reconsideration, and in an order filed February 26, 1993, granted class certification to the Plaintiffs. On May 10, 1993. the Court denied the Defendant’s motion to amend its answer to assert the affirmative defense of tolling of the statute of limitations, 821 F.Supp. 651. This matter *1083 then proceeded to trial to the court on May-25, 1993. Written closing arguments were filed by Plaintiffs on June 8, and by Defendant on June 9, 1993.

II. Issues Raised at the Trial

In order to qualify for WARN Act protection the Plaintiffs must meet each of the three elements of the threshold requirement: (1) fifty or more employees (and at least 33% of the employees); (2) suffered an employment loss; (3) at a single site of employment. United Mine Workers Intern. v. Harman Mining Co., 780 F.Supp. 375, 377 (W.D.Va.1991). At trial, the Defendant again raised its argument that the Video Systems Corporation constitutes a single site of employment, and that therefore, the Plaintiffs may not maintain their action because they have not met the requisite 33% under the WARN Act. The matters for resolution in this order include the following: whether the Plaintiffs can assert a claim under the WARN Act because the two facilities constituted a single site of employment; whether the Defendant is entitled to a good faith defense to liability based on the sufficiency of the notice distributed to its employees; whether the Defendant, if hable for damages, is entitled to any setoff of damages for previous payments made to Plaintiffs; and finally, the determination of the amount of damages due to Plaintiffs. The Court will address each issue in turn.

A. The Single Site of Employment Issue

As outlined above, the Court has previously ruled on this issue in the Defendant’s motion for summary judgment. The Court has heard additional arguments on this matter by counsel for Defendant. The Court will now incorporate its reasoning given at the trial for denying the Defendant’s Rule 52(c) motion on this issue, and also adopt its previous ruling on the Defendant’s motion for summary judgment, that the Video Systems Plaintiffs have met the threshold under the WARN Act and Defendant is hable for its failure to give notice as required under the WARN Act.

B. Sufficiency of Notice Provided to Employees and the Good Faith Defense

The WARN Act, at 29 U.S.C. § 2104(a)(4) provides:

If an employer which has violated the Act proves to the satisfaction of the court that the act or omission that violated this Act was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of this Act the court may, in its discretion, reduce the amount of the hability or penalty provided in this section.

Defendant has argued that it gave sufficient notice to Plaintiffs, and alternatively, if it did not; then it gave notice which it did not believe was in violation of the WARN Act. The Department of Labor has promulgated regulations to fill in details regarding the notice provision of the Act. At 20 C.F.R. § 639.6(b), the regulation instructs that notice is required to be given to employees who may reasonably be expected to experience an employment loss. The subsection notes further that, if at the time of notice the employer can’t identify the employee who may reasonably be expected to experience an employment loss due to the elimination of a particular position, the employer must provide notice to the incumbent in that position. Emphasis was added because the regulations regarding notice refer primarily to “the” employee, and the Court finds this noteworthy.

With regard to the contents of the notice, 20 C.F.R. § 639.7 provides first and foremost that all notice must be specific. The specificity identified in this section concerns (with regard to nonunion employees) a statement as to whether the planned action is expected to be permanent or temporary, and if the plant is to be closed, a statement to that effect, the expected date of the plant closing or mass layoff and the expected date the individual employee will be separated, an indication whether or not bumping rights exist, and the name and telephone number of a company official to contact for further information. 20 C.F.R. § 639.7(d)(l)-(4). Finally, the regulations also provide some guidance as to how the notice should be served. Receipt by mail, personal delivery, and inser *1084 tion of the notice into pay envelopes of affected employees are all contemplated in 20 C.F.R. § 639.8. That section also states that a ticketed notice, ie., preprinted notice regularly included in each employee’s pay check or envelope does not meet the requirements of WARN.

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Related

Snider v. Commercial Financial Services, Inc.
288 B.R. 890 (N.D. Oklahoma, 2002)
Frymire v. Ampex Corporation
61 F.3d 757 (Tenth Circuit, 1996)
Frymire v. Ampex Corp.
61 F.3d 757 (Tenth Circuit, 1995)

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Bluebook (online)
858 F. Supp. 1081, 9 I.E.R. Cas. (BNA) 513, 1994 U.S. Dist. LEXIS 14254, 1994 WL 392323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frymire-v-ampex-corp-cod-1994.