Virgil Deveraturda Bernard Sapitalo Shirley Sampayan Maria Lillibeth Edano v. Globe Aviation Security Services

This appeal presents the novel question whether the Worker Adjustment and Retraining Notification Act (WARN Act), 29 U.S.C. § 2101 et seq., which prohibits an employer from ordering a mass layoff without giving 60 days’ notice, applies to a mass layoff of employees who worked for a private employer as airport security screeners until the United States government federalized airport security services and took over operations at their airport.

Virgil Deveraturda, Bernard Sapitalo, Shirley Sampayan, and Maria Lillibeth Edano (collectively, Deveraturda) were employed by Globe Airport Security Services, Inc. to provide screening services at San Jose International Airport (SJC). However, they and others were let go as a result of the Aviation and Transportation Security Act (ATSA) of 2001. Pub.L. No. 107-71, 115 Stat. 597 (Nov. 19, 2001). Believing that Globe should have given 60 days’ notice under the WARN Act, which it did not do, Deveraturda brought a class action for relief under the Act.

The district court granted Globe’s motion for judgment on the pleadings, holding that it was the federal government that took over control of airport security without any ability on Globe’s part…