According to NBC News, former employees of PennySaver have filed a class action lawsuit following the abrupt closure of the company that left about 700 people without jobs.
According to the news outlet, the lawsuit claims that the company violated California laws by not giving the employees at least 60 days notice about the closure and layoffs. The former employees allegedly gathered outside of the company’s corporate office for a meeting last month claiming that they were promised at least one-week’s pay, which may have also not been adequate to fulfill state labor laws regarding layoff compensation.
Due to the confusion about the closure, the state’s labor commissioner said the agency would investigate any potential violations. Employees were devastated by the news. “It’s been around 50 plus years. I just didn’t think it would end this way,” a former worker told NBC News.
The employees were allegedly told about the closure as they left work on a Friday afternoon. PennySaver did not immediately respond to the lawsuit, but the CEO said in a statement that the company did not have funding, as its lender unexpectedly cut off its financial support in late February.
Should I Speak to an Attorney About My Layoff?
As we reported in this blog last August, there are laws like the California Worker Adjustment and Retraining Notification Act that requires companies with 75 employees or more to provide 60 days notice when laying off 50 or more workers.
If a company cannot guarantee this, it is then required to pay up to 60 days of employee compensation and benefits. Employers can face severe civil penalties if they do not follow these laws. Additionally, they can be sued by former workers. If you believe that you were not given adequate notification about a layoff, speak to our labor attorneys about your legal rights.
Class action litigation is very useful when a large group of employees is seeking back pay. You can discuss this with our attorneys by calling the number listed above or by filing out the contact request form on the side of this page.
Keep following our blog and social media sites for more information about California employment law.
Kesluk, Silverstein & Jacob– Los Angeles employment attorneys