United States Court of Appeals for the Second Circuit
Operating unit – Casino buffet
Judges Newman, Chin, and Sullivan
Background: The plaintiffs appealed from the grant of summary judgment to the defendants dismissing their complaint. The plaintiffs alleged that, without providing advance notice, the defendant closed a buffet restaurant within its casino, simultaneously laying off 177 employees. The court held that the buffet was not an operating unit or a single site of employment for purpose of federal and state laws requiring employers to give advance warning when a site or unit is to be closed.
Ruling: The Second Circuit affirmed in part and vacated in part. The court held that neither party is entitled to summary judgment. The court noted that the facts also support the plaintiffs’ conclusion that the buffet was sufficiently distinct, both organizationally and operationally, to constitute an operating unit and thus come within the protection of the WARN Acts.
Jesse C. Rose, of Phillips & Associates, for the plaintiffs-appellants; Dana M. Susman, of Kane Kessler, for the defendant-appellee.