On May 18, 2020, Raisner Roupinian LLP filed a class action suit against Klausner Lumber One, LLC, and related entities (collectively “Klausner”), seeking to recover 60 days wages and benefits for former employees who worked at the Live Oak, Florida facility and were terminated on or about March 16, 2020 in violation of the federal Worker Adjustment and Retraining Notification (WARN) Act and for unpaid wages and accrued paid time off. We contend Klausner ordered mass layoffs on or about March 16, 2020, without providing its employees with advance written notice as required by the WARN Act and that Klausner is also liable to the terminated employees for unpaid wages and accrued paid time off. The case is pending in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) where Klausner Lumber One, LLC filed for bankruptcy protection on April 30, 2020.
The Bankruptcy Court on April 13, 2021, granted preliminary approval of a $1,411,506.00 settlement on behalf of a certified class of Klausner Lumber One employees who worked at the Live Oak, Florida facility and were terminated without cause as part of the shutdown on March 16, 2020. The settlement, if approved, would resolve the Klausner Lumber One employees’ WARN, unpaid wage, unpaid PTO, unremitted employee deductions, and unpaid compensation for medical expenses claims. Notice of the proposed settlement will be mailed to the Klausner Lumber One class members by April 19, 2021. A final fairness hearing to determine whether the settlement should ultimately be approved is scheduled for May 20, 2021 at 10 a.m. ET.
The Bankruptcy Court granted final approval of the $1,411,506.00 WARN and wage settlement on May 20, 2021. The Klausner Lumber One Chapter 11 Plan was confirmed on July 1, 2021 and went effective on July 27, 2021, a precondition to payment of the settlement to the Class.
Checks were mailed to class members on August 11, 2021.
WARN ACT – CONTACT US
If this plant closing affected you, Raisner Roupinian LLP can provide you with updated information regarding your rights in this case. Generally, the WARN Act requires companies to provide their employees with 60 days written notice in advance of a mass layoff or plant closing. In the absence of such notice, employers may be liable to each affected employee for 60 days wages and benefits.
If you or your loved ones are affected by layoffs, furloughs or terminations during COVID-19 and would like our confidential advice at no charge, please feel free to contact us.
If you have any questions regarding this matter or to update your address and telephone number, please contact us.