Employees sue Berkline over sudden plant closure
Claim move violated federal WARN Act
Larry Thomas -- Furniture Today, April 12, 2011
GREENVILLE, Tenn. — Upholstery producer Berkline has been hit with three lawsuits in U.S. District Court here that accuse the company of violating the federal WARN Act when it suddenly shut down operations on March 30.
The suits, filed by former Berkline employees, seek class action status for their complaints. Sun Capital Partners, the private equity firm that acquired controlling interest in Berkline in 2007, also is named as a defendant in the suits.
The Worker Adjustment and Retraining Notification Act, commonly called the WARN Act, requires companies to give 60 days notice before a mass layoff or plant closing. The suits allege Berkline failed to give proper notification about the plant closing and cancelled the workers' health insurance on the day the shutdown was announced.
The suits seek 60 days' worth of wages, retirement plan contributions and health insurance premiums for the former employees. One of the suits also asks for $3.6 million in damages.
Berkline said it had 602 employees at the time of the closing.
Company officials could not be reached for comment Tuesday morning.
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