ASHEBORO, N.C. — Former Klaussner employees filed a federal lawsuit Thursday, a few days after the company shut down. Hundreds in the Triad lost their jobs because of the closure.
The plaintiffs alleged the company did not give them at least 60 days notice, as required by the WARN Act. The law requires companies as big as Klaussner to let workers, local leaders and the Department of Commerce know before shutting down. The advanced notice allows enough time for employment and unemployment benefits to get sorted out.
The plaintiffs claim they lost their jobs without cause. They want to collect pay and benefits for 60 days, citing the WARN Act. It's unclear when a judge could make a decision.
Klaussner posted a message on its website on the day of the closure. It said its lending source "unexpectedly refused to continue to fund the company's operations."
"This outcome was not reasonably foreseeable, but due to these unexpected circumstances, Klaussner can no longer sustain its operations," the message continued.
The company said it is working with employees who lost their jobs to provide resources as they become available.
WFMY News 2 talked with Nicole Patino, an employment and labor attorney from the Law Offices of Nicole Patino, before getting a hold of the lawsuit. She said it would likely be challenging for the plaintiffs to get damages because the company cited unforeseen circumstances for the abrupt layoffs.
Employers in more than 20 North Carolina counties have filed WARN notices this year.
Nearly all of the shut-downs were in the manufacturing industry.
Mecklenburg leads the state with 9, followed by Wake with 8 and Forsyth County with 7.
But after the Klaussner layoffs, Randolph County is 4th in the state with the number of effected employees at 826.
NC Works is hosting a series of hiring events for former Klaussner employees. The first is Tuesday, August 15, at the Asheboro Campus of Randolph Community College at 10 a.m.
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