The lawsuit highlights that, in its bankruptcy filings, Spirit sought to set aside $10.7 million in retention bonuses for senior executives and others involved in the airline’s management.
Former Spirit Airlines employees have filed a lawsuit against the company, claiming they were laid off without proper notice. Together, they are asking a court to order that Spirit pay its staff backpay and award outstanding benefits.
According to NBC News, Spirit Airlines abruptly shut down all operations on May 2, leaving about 17,000 employees without their jobs. The lawsuit, filed earlier this week in U.S. Bankruptcy Court for the Southern District of New York, lists six former employees as plaintiffs and is seeking class-action certification.
Attorneys for the workers say their clients were not provided with advance notice, as required by the federal Worker Adjustment and Retraining Act, or WARN Act. Employees were only notified of the airline’s imminent shutdown through an email sent by CEO David Davis, who said the airline had “decided to cease operations immediately.”
The lawsuit claims that this abrupt decision violated the WARN Act, which requires written notice at least 60 days in advance.
“We’re suing for, first of all, 60 days of unpaid wages, which is essentially a penalty for failing to provide notice prior to the closure of the company under the Worker Adjustment and Retraining Act of 1988,” said Eric Lechtzin, one of the attorneys representing the employees.
Lechtzin told NBC News that the lawsuit also seeks compensation for benefits, including continued medical coverage, retirement contributions, unclaimed vacation time, and unused sick days. In the absence of sufficient warning, he said, many Spirit workers were left scrambling to find new jobs and fill gaps in health coverage.,
“They tell me that they have chronic medical conditions or family members with medical conditions, and they don’t know what they’re going to do for medical coverage,” he said. “They’re scrambling for a lifeline, like unemployment, but that only covers a fraction of what they earned in their job, so it’s a hardship to say the least.”
The lawsuit highlights that, in its bankruptcy filings, Spirit sought to set aside $10.7 million in retention bonuses for senior executives and others involved in the airline’s management.
Spirit had previously said it delayed an announcement because it was still negotiating with lenders and the U.S. government for more financial help.
“We regret that we are not able to give you more notice of your layoff,” a letter attached to the lawsuit says. “We were not able to do so because the company was actively seeking capital to avoid these layoffs and closures, and notice would have precluded the company from obtaining the capital needed.”
Sources
Former Spirit Airlines employees file class action lawsuit after being laid off without warning
Former Spirit workers claim they’re still owed pay and benefits, lawsuit says
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