A U.S. appeals court issued a decision last week that revives a nine-year-old lawsuit filed by buffet workers at Resorts World New York City in Queens over their abrupt layoff in 2014.
The workers were not given notice before the casino closed the buffet in January 2014, laying off 177 employees. The workers sued, citing the federal Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to give 60 days notice before laying off large numbers of workers at a “single site of employment” or “operating unit.” A comparable New York law requires 90 days notice.
Genting, owner of Resorts World, moved for a summary judgment, arguing that the buffet was not a “single site” as the law requires, but one of several food outlets at Resorts World and thus, WARN did not apply. The case languished for seven years of delays before U.S. District Judge Leo Glasser granted Genting the summary judgment.
That decision was overturned by the 2nd Circuit Appeals Court, which did not initially rule on the merits of the case, but only that the judgment wasn’t warranted. Last week, the court held for the plaintiffs. In a 2-1 decision, the court held the buffet was distinct enough from the rest of the property that WARN should have applied.
The District Court judge ignored that the buffet occupied an area separate from other amenities, had a single entrance, and required workers to wear different uniforms than other casino employees, Circuit Judge Denny Chin wrote, joined by Circuit Judge Jon Newman.
The casino is liable for pay and benefits to the plaintiffs for each day the notice was not given—essentially, a two-month severance payment for each of the 177 employees.
The case is now remanded to the lower court.
