Lesson 14: Assignment
Please address the four question sets in the order in which they appear, inserting the number of the question set as a heading or in the first line of the response to that set.QUESTION SET ONE
The Snappy Cookie Company (SCC) has plants in Atlanta, Georgia and Chicago, Illinois, where it produces snacks and cookies that are sold in grocery stores throughout the U.S. Earlier this year SCC decided to scale back the Chicago plant operations, where it has about 280 employees. SCC plans to start the process with some early retirement incentives, the terms of which have already been approved by its Executive Committee. The incentives, which SCC intends to announce in about 60 days, will be offered to employees between the ages of 60 and 65. The plant roster indicates that 45 employees will potentially be eligible for the incentives. Employees in that age group who happen to apply for early retirement before the early retirement incentives are announced will retire under existing retirement plan terms. Employees in that age group who apply after the incentive announcement will get the enhanced plan terms.In light of the course reading, analyze SCCs early retirement incentive plan of action. Be sure to:State whether SCCs plan of action raises any legal issues. If so, identify the issues and discuss the laws that relate to them.Describe how SCC should modify its plan of action to avoid those legal issues.If additional information would be helpful to your analysis, identify that information and how it would impact your analysis.QUESTION SET TWO
SCC wants to get a waiver and release of claims from each employee who accepts the early retirement offer described in Question Set One, which has now been modified pursuant to your suggestions.In light of the course reading, describe the terms that need to be included in the waiver and release of claims documents, and identify the law that requires those terms.QUESTION SET THREE
Because only 10 employees took advantage of the early retirement incentives, SCC is moving forward on the second phase of its reduction in force, which is going to be much larger than originally planned due to an outsourcing deal that SCC has just made with a former competitor. In light of that deal, which will be phased in over the next couple of months, SCC intends to layoff 45 employees this month and another 55 employees next month.In light of the course reading, analyze:Whether SCC may have any WARN Act obligations and, if so, explain what it needs to do in order to meet those obligations.If SCC fails to meet those obligations, what liability could it face pursuant to the WARN Act?If additional information would be helpful to your analysis, identify that information and how it would impact your analysis.QUESTION SET FOUR
The SCC job applications that the Chicago employees filled out contained nondisclosure, noncompete, and nonsolicitation agreements. SCC doesnt care about the hourly employee commitments but wants to enforce the agreements against its master baker, Herman, who accepted the early retirement incentive offer last month. Under the terms of those agreements, Herman is permanently prohibited from (a) using or disclosing any of the recipes (which are available on the SCCs website); (b) working in any capacity for any entity (including being self-employed) that produces baked goods in any state where SCC products are sold; and (c) soliciting any current or former customers or suppliers of SCC. SCC has directed its attorneys to go to court to get an injunction enforcing those agreement terms.In light of the course reading, analyze:Whether SCC is likely to get an injunction enforcing those terms against Herman (be sure to explain your rationale as to each term.)How the terms could have been modified to enhance their likelihood of being enforced.If additional information would be helpful to your analysis, identify that information and how it would impact your analysis.