Administaff Companies, Inc. v. New York Joint Board

337 F.3d 454 (5th Cir. 2003)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

P provides personnel management, payroll, and administrative services for other businesses, essentially operating as an off-site human resources department. TheCustomShop.com (TCS) contracted for the services of P. The employees worked solely for TCS. TCS was responsible for payments, such as commissions and bonuses. P co-employed the workers so they could obtain benefits through P’s policies. P had nothing to do with running TCS’ operation. In late 2000, TCS began to encounter financial difficulties. When attempts to raise capital and to sell the business failed, TCS closed its New Jersey facility without providing the sixty days notice required by 29 U.S.C. § 2102(a). P did not participate in TCS's decision to close its New Jersey plant and was not aware of the closing until after it occurred. In April 2001, D, the union representing the employees of the New Jersey facility, demanded that P, as an employer under the WARN Act, compensate each member of the bargaining unit for sixty days of pay plus benefits because the employees did not receive proper WARN Act notice. P commenced this declaratory judgment action. The district court granted D's motion for summary judgment and D appealed.

Issues

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Holding & Decision

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Legal Analysis

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