American Apparel has another lawsuit on its hands. The company has been sued by three former employees after a “surprise mass firing over Easter Week.” The former employees filed a class action complaint on April 16 that said, “American Apparel failed to comply with the WARN Act that prohibits surprise mass firings by companies that have more than 100 employees. American Apparel claims to have more than 10,000 workers.” According to the WARN Act, employees should be given 60 days notice before mass layoffs.
Business of Fashion reported on April 17 that “these three employees were among 200 laid off earlier this year, saying they were not given appropriate legal notice.”
Dominga Valencia, one former employee who filed the class action complaint, said in a statement, “I was told that I had to sign a release immediately or I would not receive any severance at all.”
According to an article in Fashionista, a rep for American Apparel said, “These claims are absolutely without merit. This is clear from our Code of Business Conduct and Ethics, which reflects our efforts to ensure that American Apparel’s workplaces are free from harassment, bullying, and intimidation, and which promotes fair treatment of employees and compliance with labor and employment laws. We are dedicated to a culture of free speech and social commentary.”