A $1.27 million judgment has been entered against the Chicago Housing Authority in favor of police officers, security officers, and employees in the housing authority's police department, which was closed in October 1999 without giving 60 days' notice to workers, as is required under the federal Worker Adjustment and Retraining Notification Act (WARN Act), thereby violating the act. The money will not be distributed until all possible appeals have been exhausted.
The WARN Act requires that any business enterprise with 100 or more employees give 60 days of notice before a mass layoff. Workers who suffer an employment loss without receiving the proper notice may sue for compensation. In September 2002, Joseph Moriarty, an attorney with the housing authority, researched the WARN Act, reviewing the law, case law, regulations, and provisions of the Illinois Housing Authorities Act. He concluded that the authority was not subject to the act because it was not an "employer" as defined by the WARN Act's regulations. The housing authority notified the workers of the shutdown on October 12, 2002, and they were officially terminated on October 29.
The police officers were represented by two unions, Local 73 of the Service Employees International Union and the Illinois Fraternal Order of Police Labor Counsel. The security officers were represented by SEIU Local 1.
The court also levied pre-judgment interest on the $1,268,087.60 award at the rate of .91% from October 29, 1999, to the date of the judgment terminating the case on July 3, 2003.