RateGenius, Savings Group Hit with Class Action Over January 2023 Layoffs

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RateGenius and Savings Group face a proposed class action lawsuit after terminating without advance notice nearly 140 employees in January 2023. 

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The 10-page case alleges that RateGenius, a nationwide vehicle refinancing platform, and parent company Savings Group violated the federal Worker Adjustment and Retraining Notification (WARN) Act by laying off approximately 139 employees at their Austin, Texas facility around January 11 without providing at least 60 days’ advance written notice. 

BizJournals.com reports that the RateGenius layoffs mirror the “wave of cutbacks” at other tech companies, including Amazon, in the face of climbing interest rates. 

According to the complaint, RateGenius and Savings Group, on January 11 and without advance warning, informed certain Austin-based employees that “it was abolishing positions and terminating their employment” as of that day, and that fired employees were to “perform no additional compensated services.” Also on January 11, Savings Group filed with the Texas Workforce Commission an announcement that 139 employees were expected to be separated from their jobs, the case says. 

Per the suit, additional layoffs that occurred at the companies were “substantially related” to and thus “must be aggregated with” those executed on January 11.

“Savings Group and RateGenius did not provide any WARN Act Notice as required [by law] even though it planned to abolish, terminate, and/or layoff over one-hundred full-time employees employed there,” the case summarizes, adding that there existed no circumstance that would exempt the defendants from providing advance written notice. 

The January 11 layoffs at RateGenius and Savings Group are subject to the WARN Act notice requirements given that at least 33 percent of the companies’ employees, and at least 50 employees, were let go, the complaint relays. 

The lawsuit looks to cover all RateGenius and/or Savings Group employees at the Austin, Texas facility who were terminated as part of a mass layoff or plant closing within 90 days of January 11, 2023.

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