California Tech Startup Moxion Power Hit with WARN Act Class Action Lawsuit in Wake of July Layoffs

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Moxion Power Co. faces a proposed class action lawsuit that claims the tech startup unlawfully failed to give employees at least 60 days’ advance notice prior to a mass layoff in late July 2024.

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The 12-page lawsuit alleges that the company, which manufactures mobile battery-powered generators, violated the federal Worker Adjustment and Retraining Notification (WARN) Act when it abruptly laid off approximately 247 employees who worked at the 1414 Harbour Way South facility in Richmond, California without providing the proper advance notice required by law.

The suit says that Moxion Power, which reportedly filed for bankruptcy earlier this month, informed employees on July 18, 2024 that they would be furloughed until August 5. According to the case, the company also notified California’s Employment Development Department that its workers would be terminated in early August.

However, the complaint relays that just one week later, on July 25, Moxion Power announced to employees that they were terminated, effective immediately.

San Francisco Bay Area news source SFGATE.com reports that the July layoff was the second round of terminations for Moxion Power after it cut 101 employees the previous month. Per the reports, the “sudden collapse” of the company, which was backed by major industry players like Amazon and Microsoft, has been blamed on funding issues.

The Moxion Power lawsuit looks to represent anyone who worked for the company at the 1414 Harbour Way South facility and was terminated pursuant to a mass layoff or plant closing within 90 days of July 25, 2024.

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