HR Management & Compliance

News Notes: WARN Act Payments Must Include Tips And Vacation Pay

When the Las Vegas Sands Hotel casino closed its doors, it gave workers 45 days’ advance notice, rather than the 60 days required under the federal Worker Adjustment Retraining and Notification (WARN) Act. So the Sands was required to pay workers their wages for the remaining 15-day period. Now the Ninth Circuit Court of Appeals has ruled that the Sands improperly calculated what it owed employees because it didn’t include tips and double-time vacation pay the employees would have earned during those 15 days. Plus, the court said the hotel could not deduct voluntary severance payments it made to workers from its wage obligations under the WARN Act.

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