The Fort Halifax Packing Company closed its poultry packaging and processing plant and laid off its employees.
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The Fort Halifax Packing Company closed its poultry packaging and processing plant and laid off its employees. The director of Maine's Bureau of Labor Standards, Daniel Coyne, filed suit to enforce the provisions of a state statute. This statute provided that any employer that terminates operations at a plant with 100 or more employees or relocates those operations more than 100 miles away must provide one week's pay for each year of employment to all employees who have worked in the plant at least three years. The employer has no such liability if the employee accepts employment at the new location or if the employee is covered by a contract that deals with the issue of severance pay. The employer contended that the state statute was preempted by the Employee Retirement Income Security Act of 1974 (ERISA) and by the National Labor Relations Act (NLRA). Decide. [Fort Halifax Packing Co. v. Coyne, 107 S. Ct. 2211]
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The application of the state law was upheld by the US Supreme Court It held that the Maine statut...View the full answer
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