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(Reuters) - A U.S. appeals court on Tuesday said a company that shut down construction on a nuclear power plant was not obligated to provide advanced notice that its contractors' 4,000 employees would be losing their jobs.
The decision by a unanimous three-judge panel of the 4th U.S. Circuit Court of Appeals may hold broader relevance for contract workers affected by large-scale COVID-19 era layoffs.
The court said South Carolina utility SCANA Corp was not the workers' employer under the federal Worker Adjustment and Retraining Notification (WARN) Act because SCANA did not control the contractors that employed them.
Ruling otherwise would improperly stretch the law, which requires at least 60 days notice of mass layoffs, and would "subject plant owners to the prospect of uncertain and ill-defined liability," the court said.
SCANA was backed by trade groups including the U.S. Chamber of Commerce, which said in an amicus brief that a broad application of WARN Act liability could have a devastating impact on businesses...
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