Posted 20:14 ET July 27, 2020
Shares of MGM Resorts fell more than 6% in afternoon trading on Monday after casinos in Las Vegas informed their employees that if they are not withdrawn from the furlough by August 31, they will subsequently be fired.
Under the Federal Notification Adjustment and Retraining Act (WARN Act), employers are required to notify their employees when mass layoffs are expected. MGM Resorts, Wynn Resorts, Tropicana and other casino operators sent such notices.
MGM told its employees that it initially hoped the casino’s closure would be short and full operations would be restored. But the pandemic is progressing, and based on currently available data, it doesn’t look like “it will be safe to restart shows before August 31, 2020.”
This means that the “vast majority” of employees in the entertainment and sports department will be fired on that date. Health benefits will also be terminated on that date, although dismissed employees will be able to apply for emergency casino subsidies until 29 November 2020.
Shares of Las Vegas Sands, MGM and Wynn were down today, although MGM was hardest hit.
Rich Dupre has no position in any of the mentioned shares. Stupid Motley has no place in any of the mentioned actions. Stupid Motley has a disclosure policy.
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