Rifkin v. McDonnell Douglas Corp., 95-2605

• Citation: 78 F.3d 1277
• Decision Date: 06 March 1996
• Docket Number: No. 95-2605,95-2605
• Parties: , 131 Lab.Cas. P 11,510, 11 IER Cases 741 Leonard RIFKIN; James F. Hutson, on their own behalf and on behalf of all others similarly situated; Gerald Blair, Appellants, v. McDONNELL DOUGLAS CORPORATION, a Corporation, Appellee.
• Court: U.S. Court of Appeals — Eighth Circuit

Page 1277

78 F.3d 1277

64 USLW 2573, 131 Lab.Cas. P 11,510,

11 IER Cases 741

Leonard RIFKIN; James F. Hutson, on their own behalf and on behalf of all others similarly situated; Gerald Blair, Appellants, v. McDONNELL DOUGLAS CORPORATION, a Corporation, Appellee.

No. 95-2605.

United States Court of Appeals Eighth Circuit.

Submitted Jan. 8, 1996.

Decided March 6, 1996.

Appeal from the United States District Court for the Eastern District of Missouri; Lawrence O. Davis, Judge.

Kurt S. Odenwald, St. Louis, MO, argued (Jim J. Shoemake, on the brief), for appellant.

Thomas E. Wack, St. Louis, MO, argued (Robert T. Ebert, Jr. and Robert W. Lockwood, Jr., on the brief), for appellee.

Before BEAM, MORRIS SHEPPARD ARNOLD, Circuit Judges, and ALSOP, ^* District Judge.

ALSOP, District Judge.

Appellants Leonard Rifkin, et al., bring this action claiming McDonnell Douglas Corporation violated their rights under the Worker Adjustment and Retraining Notification ("WARN") Act by failing to provide timely notice to workers who suffered an employment loss. 29 U.S.C. §§ 2101-09 (1992). They appeal the District Court's ¹ ruling that there was no "mass layoff" as defined in the WARN Act because the requisite 500 employees did not suffer an employment loss and, because there was no "mass layoff", the WARN Act does not apply. We affirm.

I.

In early 1992, Leonard Rifkin and James F. Hutson were employees of McDonnell Douglas Corporation in the metropolitan St. Louis area. Between October 16, 1992 and January 14, 1993, 609 employees, including appellants, were laid off by McDonnell Douglas. None of these employees received the 60 days' written notice required by the WARN Act.

These 609 employees worked at different locations in the St. Louis metropolitan area. Five hundred sixty-two (562) employees worked at the St. Louis County location whereas 47 employees worked at the St. Charles County location. ² These two locations are 11 1/2 miles apart. Fifty-two (52) employees were "part-time" employees as defined by the WARN Act (50 at the St. Louis County location and 2 at the St. Charles County location). Both parties agree the part-time employees do not count towards the requisite 500 employees. Thirty-five (35) employees who had been laid off during this period were rehired within six months (32 at St. Louis and 3 at St. Charles). Thirty-one (31) employees elected early retirement in lieu of being laid off (all at St. Louis).

Appellants Rifkin and Hutson filed suit in the Eastern District of Missouri on January 21, 1993 claiming McDonnell Douglas violated the WARN Act. On August 11, 1993, appellants filed their first amended complaint adding Gerald Blair as a plaintiff and requesting they be allowed to bring the suit as a class action on behalf of all McDonnell Douglas employees who were permanently laid off between October 16, 1992 and January 14, 1993. A motion for class certification filed October 13, 1993 was denied by the Honorable Charles Shaw on December 22, 1994.

McDonnell Douglas filed its Motion for Summary Judgment on January 7, 1995, arguing the WARN Act does not apply because there was no "mass layoff." Under the WARN Act, at least 500 employees must suffer an "employment loss" at a single site in order for there to be a "mass layoff." ³ First, McDonnell Douglas argued the St. Louis County and St. Charles County sites were not a "single site" as defined by the WARN Act and thus the number of laid off employees from these separate locations could not be aggregated for purposes of meeting the 500 employee requirement. Second, McDonnell Douglas argued that employees who were laid off and later rehired within six months did not suffer an employment loss as defined by the WARN Act because their layoffs were not in fact permanent. Finally, McDonnell Douglas argued the employees who opted for early retirement in lieu of layoff did not suffer an employment loss as defined by the WARN Act. ⁴ The District Court granted McDonnell Douglas's Motion for Summary Judgment. According to the court below, the St. Louis and St. Charles sites were not a "single site", and those employees laid off and rehired within six months and those employees who opted for early retirement in lieu of layoff did not suffer an employment loss. Accordingly, the 500 employee requisite number was not met.

Mr. Rifkin, et al., now appeal the District Court's decision in all respects.

II.

Summary judgment is appropriate when no genuine issue of material fact remains and the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). We review a grant of summary judgment de novo, applying the same standard as the trial court. We view the record in the light most favorable to the non-moving party, with all reasonable inferences drawn in that party's favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 2513-14, 91 L.Ed.2d 202 (1986). But if the record as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1987). We also review a district court's interpretation of a statute de novo. Crane v. Sullivan, 993 F.2d 1335, 1336 (8th Cir.1993).

The WARN Act requires that an employer give 60 days' notice to all affected workers before ordering a mass layoff. 29 U.S.C. § 2102(a). A mass layoff is defined as a reduction in force which:

(B) results in an employment loss at the single site of employment during any 30-day period for--

(i)(I) at least 33 percent of the employees (excluding any part-time employees); and

(II) at least 50 employees (excluding any part-time employees); or

(ii) at least 500 employees (excluding any part time employees); ... 29 U.S.C. § 2101(a)(3).

Appellant argues the WARN Act applies because, under § 2101(a)(3)(B)(ii), at least 500 employees suffered an employment loss at the single site composed of the metropolitan St. Louis area, including the St. Charles County sites. The issues to be determined on appeal all concern the aggregation of the number of employees who suffered an employment loss: (A) whether geographically separate sites, those located in St. Louis County and those in St. Charles County, compose a "single site", thus allowing the aggregation of the number of laid off employees at both locations; (B) whether employees at these locations who were laid off and then rehired within six months suffered an employment loss as defined by § 2101(a)(6); (C) whether employees at the St. Louis sites who chose early retirement in lieu of layoff suffered an employment loss as defined by § 2101(a)(6).

A. Single Site

There is no statutory definition of "single site" of employment in the WARN Act but Department of Labor ("DOL") regulations and comments provide significant guidance in interpreting these provisions. The DOL Comments to the WARN Act state: "workers who suffer an employment loss at another single site of employment are not counted in determining whether plant closing or mass layoff coverage thresholds are met." DOL Comments, 54 Fed.Reg. 16,042, 16,047 (1989). The DOL defines "single site of employment" spatially by stating a "single site of employment can refer to either a single location or a group of contiguous locations." 20 C.F.R. § 639.3(i)(1) (1995). As a general rule, geographically related facilities are single sites of employment whereas geographically separate facilities are separate sites. DOL Comments, 54 Fed.Reg. 16,042, 16,049-50 (1989).

Sites need not be contiguous in order to be considered a "single site", but in order for non-contiguous sites to be deemed a "single site", there must be some connection between the sites beyond that of common ownership. In the situation of non-contiguous sites, the DOL states:

(4) Non-contiguous sites in the same geographic area which do not share the same staff or operational purpose should not be considered a single site. For example, assembly plants which are located on opposite sides of a town and which are managed by a single employer are separate sites if they employ different workers. 20 C.F.R. § 639.3(i)(4) (1995).

A DOL discussion paper further clarifies that "geographically separate buildings (i.e. several blocks or miles apart) would not appear to constitute a single site unless they were part of a single operation. An example of such an exception might be two warehouses several blocks apart sharing the same staff and equipment." 9A Ind.Empl.Rights Man. (BNA) 595:954 (1988); International Union, United Mine Workers v. Jim Walter Resources, Inc., 6 F.3d 722 (11th Cir.1993).

The WARN Act's legislative history supports this definition. The House/Senate conferees removed "all references to 'place of employment' and replace[d] them with 'single site of employment.' This change is intended to clarify that geographically separate operations are not to be combined when determining whether the employment threshold for triggering the notice requirement is met." H.R.Conf.Rep. No. 576, 100th Cong., 2d Sess. 1046 (1988), reprinted in 1988 U.S.C.C.A.N. 2078, 2079.

Other circuits interpret the regulations and legislative history similarly, holding that sharing of staff and equipment, and sharing the same operational purpose are appropriate criteria for determining whether two non-contiguous sites comprise a "single site" under the WARN Act. See Williams v. Phillips Petroleum Company, 23 F.3d 930 (5th Cir.1994); International Union, United Mine Workers v. Jim Walter Resources, Inc., 6 F.3d 722 (11th Cir.1993).

Appellant argues: (1) he has created a genuine issue of material fact as to whether the St. Louis and St. Charles sites share the same staff, equipment, and operational purpose; and, in the alternative, (2) the "truly unusual organizational situation" exception set forth at 20 C.F.R. § 639.3(i)(8) applies in the case at hand.

(1) Operational staff and purpose

A...