‘Advance Notice’: Dillon Logistics Hit with WARN Act Class Action Over Aug. 2021 Mass Layoff

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A proposed class action alleges Dillon Logistics and Cotton Creek Capital Partners II, L.P. violated the law by failing to provide 60 days’ advance notice of a mass layoff on August 31, 2021.

Filed in Delaware, the 11-page case claims Dillon, an asphalt, chemical and dry bulk hauling company, and Cotton Creek, who acquired a majority interest in Dillon in 2017, owe workers 60 days of wages and benefits, including for unpaid accrued but unused vacation time. The suit alleges Dillion, who abruptly closed last month after 41 years in business, and Cotton Creek have run afoul of the federal Work Adjustment and Retraining Notification Act (WARN). 

According to reports, Dillon owned 323 trucks and 531 trailers, and employed 341 drivers across facilities in Georgia, Texas, Illinois, Ohio, Indiana and Florida. The plaintiff, who worked at Dillon’s Ellabell, Georgia facility, claims to have been among approximately 350 persons terminated without cause on August 31. 

“Defendants, as a single employer, were required by the WARN Act to give the Plaintiff and the Other Similarly Situated Employees at least 60 days advance written notice prior to their terminations,” the complaint states. “Prior to their terminations, neither the Plaintiff nor the other Similarly Situated Employees received written notice that complied with the requirements of the WARN Act.” 

Dillon and Cotton Creek not only failed to pay wages and benefits owed under the WARN Act, but failed to make 401(k) contributions and provide terminated workers with health insurance coverage, the case claims. 

The lawsuit says Dillon and Cotton Creek are subject to WARN Act requirements as a “single employer” given they employed 100 or more employees, or employed 100 or more employees who in aggregate worked at least 4,000 hours per week exclusive of overtime within the U.S., and employed more than 50 workers at each facility. 

The suit looks to represent all Dillon Logistics employees who were terminated as part of the August 31, 2021 layoff. 

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