Pink Energy Unlawfully Terminated 1,500 Employees Without Notice, Class Action Claims

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Pink Energy faces a proposed class action that claims the solar power company unlawfully failed to provide advance written notice before terminating approximately 1,500 employees throughout September 2022.

The 12-page case alleges Pink Energy dismissed 1,500 employees throughout its facilities in Troy and Chesterfield, Michigan and Raleigh, North Carolina without notice from September 1-22. The lawsuit argues that the terminations violated the federal Worker Adjustment and Retraining Notification (WARN) Act, which entitles employees at companies of a certain size to at least 60 days' advance written notice before a mass layoff or plant closing.

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As mandated by the WARN Act, a company must provide advance written notice if a mass layoff or plant closure terminates at least 50 full-time employees, constituting 33 percent of the total workforce, the complaint relays. In general, WARN Act requirements apply to companies that employ either 100 or more full-time workers or 100 or more workers who work a minimum of 4,000 hours a week, the suit states.

According to the complaint, Pink Energy has also failed to provide the terminated employees with their respective wages, salaries, commissions, bonuses, accrued holiday pay, accrued vacation pay, pension and 401(k) contributions, health insurance benefits, and other benefits required under the Employee Retirement Income Security Act (ERISA) for 60 days after their termination.

In light of these allegations, the plaintiffs and similarly situated individuals seek to recover 60 days’ of wages and benefits, pursuant to the WARN Act and ERISA.

In the wake of the mass layoffs, Pink Energy has attracted negative attention for blaming its closure on a partnership with Generac, a company that provides solar backup batteries. In a letter in which it announced the termination of all its employees, Pink Energy admitted that it was forced to close its doors due to “financial difficulties” apparently caused by faulty Generac equipment. Pink Energy claims that Generac’s devices have a 40 percent failure rate, which led to a massive influx of customer complaints and sales decline.

Pink Energy is suing Generac in federal court for a loss in revenue, but Generac’s Director of Marketing, Tami Kou, suspects an ulterior motive.

“We believe Pink Energy may be hoping to distract customers from the many complaints and allegations that reportedly have been leveled against them regarding poor installation and service, as well as public accounts of dubious marketing claims and sales tactics,” Kou said.

According to the suit, Pink Energy filed with the U.S. Bankruptcy Court for the Western District of North Carolina a voluntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code on or about October 7.

The lawsuit looks to represent anyone who was employed by Pink Energy at its Troy, Chesterfield, or Raleigh facilities and was terminated without cause as part of a mass layoff or plant closing on or about September 1 through September 22, 2022.

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