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United Furniture Industries is being sued over email and text messages after laying off around 2,700 employees.
The plaintiff — a former employee of eight years who represents “potentially thousands” of other victims, according to court documents — is challenging the Mississippi-based company over an alleged violation of the state’s Worker Adjustment and Retraining Notification (WARN). Law.
The WARN Act requires employers, under certain conditions, to give their employees 60 days’ notice of a plant closure or collective layoff.
“All companies are encouraged to notify the state’s Dislocated Worker Unit as soon as possible. Some states also have factory closure laws, and those state laws may impose additional requirements,” the Department of Labor notes on its website.
UNITED FURNITURE FIRES THOUSANDS BY TEXT DAYS BEFORE THE THANK YOU
United Furniture Industries in Mississippi (Google Maps / Google Maps)
In a statement to The Hill, Jack Simpson, the attorney who advocated for the former employees, said they did not receive that warning or 60 days of severance pay.
“I’ve spoken to a man and woman who both lost their jobs at the same time, a person with stomach cancer who is concerned about affording their medication, and another person who is making a decision whether she wants to postpone an operation or pay the medical expenses. This is a tragic situation that is difficult to understand,” he said.
Simpson told the outlet that in addition to Toria Neal, more than 100 former employees of the furniture company have now hired his company.
An employee prepares a sofa frame for springs Monday, August 12, 2019 at CR Laine’s manufacturing facility in Hickory, North Carolina. (Photographer: Logan Cyrus/Bloomberg via Getty Images/Getty Images)
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The laid-off employees were told the layoffs were expected to be permanent due to “unforeseen business circumstances” and that all benefits would be discontinued “without the provision of COBRA,” referring to federal law giving people who lose their jobs an option may maintain their employer-sponsored health insurance coverage.
While many of these employees live in northeastern Mississippi, layoffs also took place at locations in North Carolina and California.
Parts of a sofa frame sit on the CNC milling table at CR Laine’s manufacturing facility in Hickory, North Carolina, Monday, August 12, 2019. (Photographer: Logan Cyrus/Bloomberg via Getty Images/Getty Images)
WFMY reported last week that it determined the company had not filed a WARN notice prior to the North Carolina layoffs.
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The channel, citing the North Carolina Department of Commerce, emphasized that not every company is required to file a WARN, depending on the circumstances of its particular situation. Unforeseen business circumstances are one of those exceptions.
FOX Business’ requests for comment from Simpson and United Furniture Industries have not been responded to.
The Associated Press contributed to this report.
