Question:
A wholesale grocery warehouse and distributor terminated two hundred employees in a mass layoff. The company had been experiencing financial problems for many months. Its largest customer was United Supermarkets, which accounted for about forty percent of its orders and which had been a customer for more than thirty years. On January 8, 2004, United notified the wholesaler that it would be placing more orders with alternative suppliers due to a problem that the wholesaler was having in filling United’s orders in a timely fashion, but that it hoped to continue to do business with the wholesaler. On January 15, 2004, United informed that wholesaler that it would no longer be United’s primary supplier. Discussions with the wholesaler’s bank and business consultants on January 20, 2004 led to a decision to lay employees off. Employees received notice in their January 22, 2004 paychecks. The terminations occurred days later. Did the employer violated the WARN Act? Why or why not?