Thousands of restaurants across the country are, once again, facing the possibility of letting go workers or reducing hours to stay afloat as dining restrictions tied to COVID-19 continue to cripple the industry.
Dave & Buster’s Entertainment Inc. recently laid off 1,300 employees in seven states. The company is required to notify employees of layoffs under the federal WARN (Worker Adjustment and Retraining Notification) Act, introduced in 1988 to protect employees impacted by mass layoffs.
Independent restaurants also face dried up funds tied to the Paycheck Protection Program, geared to keep employees on the payroll.
As a result, operators from coast-to-coast might not realize that they could face challenges tied to the WARN Act, including the possibility of a class-action suit for not complying to the federal law.