DGI Services, LLC
On December 21, 2011, DGI was placed in involuntary bankruptcy. On December 29, 2011, we filed suit against DGI Services, LLC to recover 60 days wages and benefits for former employees of DGI Services, LLC under the Worker Adjustment and Retraining Notification (“WARN”) Act, the New Jersey WARN Act and the California Labor Code § 1400. We contend DGI Services, LLC ordered mass layoffs on or about December 5, 2011 without providing the employees with advance written notice. The WARN suit is pending in the United States Bankruptcy Court for the District of New Jersey.
In 2014, the Court certified the WARN suit as a class action, and notice of the action was mailed to the members of the class on August 4, 2014.
The parties have engaged in limited discovery pending the outcome of insurance litigation pursued by the chapter 7 trustee, which was recently resolved.
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 under the California WARN Act, and one week of severance for each year of service under the New Jersey WARN Act.
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