A law that needs real enforcement
By Phil Mattera for the Dirt Diggers
Digest
In 2020 a furniture company called Flexsteel Industries laid off about 300 workers at its plants in Dubuque, Iowa and Starkville, Mississippi. According to a class action lawsuit filed on behalf of the employees, Flexsteel violated federal law by failing to provide either severance pay or 60 days’ notice.
The
law in question is the Worker Adjustment and Retraining Notification Act of
1988, better known as the WARN Act. Oddly, the law does not provide for
enforcement by the U.S. Department of Labor. Instead, workers must usually take
a non-compliant employer to court. They have done so many times and have often
won substantial settlements.
WARN
Act class action lawsuits are the latest category of private litigation to be added to Violation
Tracker. The newly posted update to the database includes more than 100 WARN settlements totaling
over $225 million over the past two decades. About half of the settlements were
for $1 million or more. That includes the $1.3 million won by the Flexsteel
workers.
Overall,
the settlements range from $100,000 to $35 million, with the highest amount
coming in a 2011 case involving the now-defunct semiconductor company Qimonda. The second largest was $15 million,
in a case involving Taylor, Bean & Whitaker Mortgage Corp.



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