Class action lawsuit claims Mississippi furniture company violated federal law when it laid off thousands

Published 6:07 am Sunday, November 27, 2022

A class action lawsuit claims that the Mississippi furniture company that laid off thousands of employees before Thanksgiving violated federal law when it ended their employment without giving adequate notice.

Lawyers for Toria Neal filed the suit last week in federal court in the Northern District of Mississippi, where United Furniture Industries is headquartered.

According to court documents, Neal worked for United in Mississippi since 2019 until getting notification late Monday that the company was terminating all employees immediately.

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The lawsuit claims that United Furniture failed to give the 60-day notice of termination required under the Worker Adjustment and Retraining Notification Act for companies that employ more than 100 people.

On Monday, Nov. 21, United Furniture notified all of its employees my email and text messages that it was terminating it entire workforce, with the exception of over-the-road drivers. United Furniture, in its messages, said that the terminations were expected to be permanent, and without a provision under the law that allows employees to continue health insurance coverage after leaving a job. The company blamed unforeseen business circumstances for the terminations.

According to the U.S. Department of Labor, employers who violate the 60-day provision may be liable to each employee for back pay and benefits up to the 60 days.