Bus Company Coach USA Failed to Provide Workers Advance Notice Before Layoffs, Class Action Lawsuit Claims
Sheppard et al. v. Variant Equity Advisors, LLC et al.
Filed: August 27, 2024 ◆§ 2:24-cv-08777
A class action lawsuit alleges bus company Coach USA failed to give employees at least 60 days’ advance notice prior to a mass layoff in August 2024.
A proposed class action lawsuit alleges bus company Coach USA failed to give employees at least 60 days’ advance notice prior to a mass layoff in August 2024.
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The 12-page lawsuit was filed by three New Jersey residents who worked as bus drivers for the company, which is owned by defendant Variant Equity Advisors, LLC. The plaintiffs claim that Coach USA violated the federal Worker Adjustment and Retraining Notification (WARN) Act when it terminated them and at least 50 other full-time employees last month without proper advance notice.
Per the suit, the company also breached New Jersey’s WARN Act, which requires an employer to provide at least 90 days’ written notice before terminating a worker’s employment as part of a mass layoff.
In addition, the case contends that Coach USA failed to give employees severance pay equal to one week of wages for each year of their employment, in violation of the WARN Act. Following the layoff, the company also unlawfully neglected to pay workers all compensation due, including their respective wages, salaries, commissions, bonuses, benefits and accrued holiday and vacation pay, the complaint alleges.
As the filing tells it, the company is liable to provide workers with backpay and benefits for each day of its alleged WARN Act violations, up to 60 days.
According to CNN, Coach USA filed for Chapter 11 bankruptcy in June of this year after a 2019 buyout and a steep decline in ridership during the COVID-19 pandemic left it saddled with debt.
The Coach USA lawsuit looks to represent any workers whose employment was terminated as a result of, or as the reasonably foreseeable consequence of, the company’s mass layoffs, termination of operations and/or plant closure.
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