Schmidt v. FCI Enterprises LLC, No. 19-2384 (4th Cir. 2021)
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Plaintiffs filed suit against FCI and its owners, alleging claims under the Worker Adjustment and Retraining Notification (WARN) Act and the Fair Labor Standards Act (FLSA). The district court entered judgment on the WARN Act claim in favor of plaintiffs and on the FLSA claim in favor of FCI. While FCI's appeal was pending, plaintiffs sought to dismiss the appeal because FCI had failed to post the appeal bond ordered by the district court.
The Fourth Circuit declined to exercise its discretion to dismiss the appeal after considering the facial invalidity of the bond and prejudice to the parties. On the merits, the court concluded that the district court erred in determining that FCI was an "employer" covered by the WARN Act. The court explained that FCI employed fewer than 100 employees on August 6, 2018, and is therefore not an "employer" whose shutdown activities are covered by the WARN Act. Accordingly, the court reversed the district court's judgment on the WARN Act claim.
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