LOS ANGELES — A class action lawsuit filed Thursday against American Apparel by three former employees alleges the apparel manufacturer violated federal and state labor laws when it cut some 200 jobs earlier this month.
The lawsuit accuses the company of violating the state and federal Worker Adjustment and Retraining Notification Act and seeks lost wages resulting from the alleged insufficient warning given to laid off workers. That amounts to roughly $1 million, according to Keith Fink, an attorney at the firm Fink & Steinberg, which is representing the plaintiffs.
The complaint accuses the company of disclosing the layoffs to the media a few days before informing affected workers. The plaintiffs also allege many of the workers were “duped” into signing agreements that would relieve the company of any legal obligations under the WARN Act or later claims for severance, according to the complaint. Severance pay to employees who signed the agreement in some instances totaled $300, the complaint said.