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Home Business

Ex-employees file class action lawsuit against Pirch, claiming illegal layoffs

LA Daily News by LA Daily News
May 3, 2024 3:41 pm EDT
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Former employees of Pirch, the high-end kitchen furnishing store that filed for bankruptcy last month, have filed a class-action lawsuit against the retailer.

In the lawsuit, filed Wednesday, former Pirch worker Liza Rogers and others in the class allege that Pirch failed to follow state and federal laws when it laid them off abruptly several weeks ago.

Pirch did not respond to a request for comment.

Also see: Pirch, luxury kitchen retailer, sued for unpaid rent and inventory, totaling $5 million

The class has not been certified yet.

Specifically, employees say Pirch failed to follow the Worker Adjustment and Retraining Notification (WARN) Act.

They are suing for 60 days’ pay and benefits, and attorneys’ fees.

More on Pirch: They handed luxury retailer Pirch money and trust. Now customers want their money back

“The Defendant violated the WARN Acts by failing to give the Plaintiff and other similarly situated employees of the Defendant at least 60 days’ advance written notice of termination, as required by the WARN Act,” the lawsuit states.

The complaint also says that Rogers and about 150 other employees were terminated on or around April 9 as part of a mass layoff.

Pirch could also be liable for a civil penalty of up to $500 a day for each day it violates California labor code, the complaint states.

On April 19, Pirch filed for Chapter 7 bankruptcy.

Related: Pirch sued by American Express for $33M over disputed transactions

In the bankruptcy filing, Pirch stated that its liabilities far surpass its assets, which implies that not all creditors will be repaid, and some or all will not receive the entirety of what is allegedly owed.

According to the lawsuit, in a WARN Act claim, each class member gets priority for the first $15,150 of what is owed under U.S. bankruptcy code. Amounts owed beyond that are considered lower priority.

Rogers, in an email interview with The San Diego Union-Tribune, shared how she was impacted by the abruptness of the layoff.

“This lay…

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LA Daily News

The Los Angeles Daily News is the second-largest-circulating paid daily newspaper of Los Angeles, California. It is the flagship of the Southern California News Group, a branch of Colorado-based Digital First Media.

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