Fired after bankruptcy, Mervyn’s workers file WARN suit — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Fired after bankruptcy, Mervyn’s workers file WARN suit

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in Human Resources

Three former Mervyn’s employees recently filed a lawsuit against the bankrupt department store company for violating the federal Worker Adjustment and Retraining Notification (WARN) Act when it suddenly fired hundreds of workers last year.

Three Hayward-based workers claim Mervyn’s owes them 60 days of unpaid wages and pension benefits. The company filed for Chapter 11 bankruptcy protection in July 2008. On Oct. 30, Mervyn’s won approval to close its stores and hold liquidation sales. That’s when the workers lost their jobs.

The workers claim that since the alleged WARN violations occurred after the company filed for bankruptcy, they were entitled to claim some of Mervyn’s assets for wages and benefits.

Final note: There are very limited circumstances under which employers can shut down facilities without adequate notice. Consult legal counsel before making any layoff or plant-closing announcements. 

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