Former Spirit employees file lawsuit saying company still owes them back pay, benefits

Former Spirit employees have filed a proposed class-action lawsuit against the airline, claiming workers were laid off without proper notice and are still owed pay and benefits after going out of business.

Spirit abruptly shut down operations on May 2, leaving about 17,000 employees without jobs. The lawsuit, filed in U.S. Bankruptcy Court for the Southern District of New York by a group of six terminated employees from Florida, claims they were not given advance notice as required under the federal Worker Adjustment and Retraining Notification Act, also known as the WARN Act.

Employees were notified of the airline’s shutdown through an email from CEO David Davis stating the Dania Beach-based budget airline had “decided to cease operations immediately,” according to the lawsuit. The abrupt cessation, the plaintiffs argue, violates the WARN Act, which requires at least 60 days written notice.

“We’re suing for, first of all, 60 days of unpaid wages, which is essentially a penalty for failing to provide notice prior to the closure of the company under the Worker Adjustment and Retraining Act of 1988,” said Eric Lechtzin, one of the attorneys representing the plaintiffs.

Lechtzin said the lawsuit also seeks compensation for benefits, including the continuation of medical coverage, retirement contributions, unused vacation and sick time. He said many former employees are now not only scrambling to find work, but also trying to figure out how to maintain healthcare coverage after the sudden shutdown.

“They tell me that they have chronic medical conditions or family members with medical conditions, and they don’t know what they’re going to do for medical coverage,” Lechtzin said. “They’re scrambling for a lifeline, like unemployment, but that only covers a fraction of what they earned in their job, so it’s a hardship to say the least.”

Some former employees have reported that they still have not received their final paychecks and Lechtzin said the lawsuit could expand if that issue is not resolved.

The lawsuit also takes issues with the fact that Spirit filed a motion in bankruptcy court seeking approval of $10.7 million in retention bonuses for senior executives and others during the wind-down of the airline’s operations.

However, in its WARN notices filed with state agencies after the shutdown, Spirit said the reason it delayed the announcing its closure and subsequent layoffs was because the airline was still negotiating with its lenders and the U.S. Government for more financial help.

“We regret that we are not able to give you more notice of your layoff. We were not able to do so because the company was actively seeking capital to avoid these layoffs and closures, and notice would have precluded the company from obtaining the capital needed,” the letters attached to the lawsuit states.

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