Employment in Bankruptcy
Labor and Employment | BankruptcyWe advise on employment issues in bankruptcy including WARN Act compliance, collective bargaining agreement rejection, employee claims, and workforce transitions in distressed situations.
Overview
Managing Employment Issues in Distress
Bankruptcy creates unique employment challenges. MC Law's Employment in Bankruptcy practice helps debtors, creditors, and acquirers navigate workforce issues in insolvency proceedings.
WARN Act Issues
Bankruptcy doesn't eliminate WARN obligations. We advise on notice timing, the faltering company exception, and liability for WARN violations in bankruptcy. We help structure transactions to manage WARN exposure.
Collective Bargaining Agreements Section 1113 governs CBA rejection. We advise on rejection requirements, negotiation obligations, and litigation strategies. We represent parties in CBA rejection proceedings. Employee Claims Employees have claims against bankrupt employers. We advise on priority of wage claims, WARN claims, benefit claims, and discrimination claims in bankruptcy. We represent employee interests in claims resolution. Executive Compensation Bankruptcy limits executive compensation. We advise on Section 503(c) restrictions, key employee retention plans, and compensation approval requirements. We structure compliant incentive arrangements. Asset Sales Going-concern sales affect employees. We advise on successorship issues, employment transitions, and benefit matters in Section 363 sales. We help structure acquisitions that achieve workforce objectives. PBGC Issues Defined benefit plan termination involves PBGC. We advise on pension obligations in bankruptcy, PBGC claims, and distress termination procedures.Our Services
labor_and_employment
Federal registration and validity opinions
termination_layoffs_plant_closings
Federal registration and validity opinions
unions
Federal registration and validity opinions
Licensing & Transactions
Negotiate and draft license agreements
DMCA Services
Takedown notices and counter-notices
Enforcement
Cease and desist through litigation
Fair Use Analysis
Evaluate fair use defenses and risks
Music & Entertainment
Industry-specific copyright matters
Frequently Asked Questions
Under Section 1113 of the Bankruptcy Code, a debtor may seek court approval to reject or modify a CBA after making a proposal to the union, providing relevant information, and demonstrating the modifications are necessary for reorganization. The process requires good faith negotiation.
Employee wage and benefit claims receive priority treatment up to statutory limits. Priority claims for wages earned within 180 days before filing are capped at a set amount per employee. Claims exceeding the cap are treated as general unsecured claims.
Yes, the WARN Act generally applies to employers in bankruptcy, though courts have debated the scope of the unforeseeable business circumstances exception. Violation claims may receive administrative expense priority, increasing pressure for compliance.
Issues include continuation of health benefits, treatment of pension obligations, retiree benefit modifications under Section 1114, COBRA compliance, severance payment obligations, and assumption or rejection of key employee retention agreements.
Section 503(c) restricts retention payments to insiders and key employee compensation in bankruptcy. Retention payments require court approval and must satisfy requirements showing the transfer is essential and the employee has a bona fide competing offer.
Fair use is a defense that permits limited use of copyrighted material without permission. Courts consider four factors: the purpose and character of use (commercial vs. educational, transformative vs. copying), the nature of the copyrighted work, the amount used, and the effect on the market. Fair use is highly fact-specific.
For works created today by individual authors, copyright lasts for the life of the author plus 70 years. Works made for hire and anonymous/pseudonymous works are protected for 95 years from publication or 120 years from creation, whichever is shorter. Older works may have different terms.
Yes, software code is protected by copyright as a literary work. Both source code and object code can be registered. However, copyright protects the expression of ideas, not the underlying functionality—patent protection may be more appropriate for novel methods and processes implemented in software.
Our virtual legal services offer streamlined, cost-effective solutions for common copyright needs. Services like copyright registration, assignment agreements, and DMCA takedowns are available online with fixed, transparent pricing. You get the quality of a top IP firm with the convenience of digital delivery.
Related Matters
Represented streaming platform in landmark DMCA safe harbor case. Successfully defended client's safe harbor status while obtaining injunctive relief against repeat infringers, resulting in dismissal of $500M damages claim.
Prosecuted copyright infringement claims on behalf of professional photographers whose work was used without authorization. Secured significant damages award and implementation of improved licensing procedures.
Enforced copyright and trade dress rights in mobile game against clone applications. Obtained preliminary injunction and permanent removal of infringing apps from major app stores worldwide.
Cutting-edge case addressing use of copyrighted music in AI training datasets. Negotiated comprehensive licensing framework that allows continued AI development while protecting rightsholders' interests.
Prosecuted claims against former executive who copied proprietary source code to competitor. Established ownership under work-for-hire doctrine and obtained injunction plus damages for willful infringement.
Represented academic publisher in enforcement action against site hosting pirated textbooks. Implemented systematic takedown program and pursued contributory infringement claims against operators.
Get in Touch
Connect with our copyright team to discuss your matter
Practice Contacts
Michael Roberts
Sarah Kim
