98 people that were laid off and filed suit, will end with judge’s approval of agreement. Former employees of Consolidated Manufacturing have come to a tentative settlement agreement with the company in conjunction with February’s unexpected mass layoff.
The agreement, still awaiting judge’s approval, will end a class action lawsuit filed in June by 98 employees alleging the company violated federal Workers Adjustment and Retraining Notification Act.
The law requires a company to give its employees at least 60 days notice if it plays to lay off more than 100 employees. Approximately 120 employees were given 30 minutes notice prior to the company shutting down its manufacturing plant on February. 28th. The company, does not admit to violating the act, contends it fell under the ‘faltering company’ exemption and they were not required to give notice.
A Dec. 21 hearing is set before a U.S. District judge in Wichita to consider the settlement agreement.
The proposed $240,000 settlement is about half what workers sought, said 27-year employee Bart Newberry, whose name titles the suit and who was selected by his co-workers to represent them. The suit sought pay and benefits for all employees for the 60 days.