Section Menu



Frequently Asked Questions

Question:  How is WARN applicable to bankruptcy situations?

Date Added:  3/1/2012 3:39:08 PM Hits:  604
Last Revised:  3/1/2012 3:39:08 PM Vote: 
  0 votes / 0 avg.

WARN remains applicable to an employer that declares bankruptcy in some circumstances. If an employer declares bankruptcy and then orders a plant closing or mass layoff, it may still be liable under WARN. There are two situations in which WARN may apply in a bankruptcy. The first is when the employer knew about the closing or mass layoff before filing bankruptcy and should have given notice but seeks to use bankruptcy to avoid giving notice. The second is when the employer continues to run the business in bankruptcy, usually as a "debtor in possession." WARN does not, however, apply to a trustee in bankruptcy whose sole function is to wind up the business. The exceptions to the notice requirement, known as the faltering company and unforeseeable business circumstances exceptions, often come up in bankruptcy
cases. The bankruptcy proceeding does change the court in which any WARN claim must be filed, from the District Court to the Bankruptcy Court.

Still Need Answers?

For technical assistance, submit a Help Request here.External link opens in a new window

Office Hours: Monday - Friday 8:00 AM - 4:30 PM

Flash Animation1
To control the size of the flash movie, you can use the property window and replace the description with the width and height in parenthesis. For ex (300, 400)
External Address (Url)


Copyright © 2006 - 2014 Illinois Department of Commerce and Economic Opportunity

Illinois workNet Centers are an equal opportunity employer/program. At Illinois workNet Centers, auxiliary aids and services are available upon request to individuals with disabilities. All voice telephone numbers on this website may be reached by persons using TTY/TDD equipment by calling TTY (800) 785-6055 or 711.

  • About Us
  • Accessibility
  • Site Map
  • Contact Us
  • Link To Us
  • Content Policy
  • Moderation Policy
  • Privacy Policy
  • Terms and Conditions