A lawsuit has been filed and seeks class action status against the spa alleging unpaid employee wages and benefits. The lawsuit was filed in US Bankruptcy Court, New Jersey, Case No. 07-20464, on behalf of 300 former employees and claims Georgette Klinger Spa failed to warn employees of its closure despite filing for bankruptcy five months prior. The spa did not notify its employees 60 days before closing, as mandated by federal law, and in violation of the Worker Adjustment and Retraining Notification Act, or WARN.
Georgette Klinger Spa filed for bankruptcy in July 2007, and shut its doors abruptly in December 2007. The complaint alleges the spa owner, Georgette Klinger, used employees to work for the company up to the day of closing, then shut its doors without warning and failed to paid employees for two weeks of wages. The employees lost wages and their family health insurance benefits without warning.
WARN mandates employers with over 100 employees to give 60 days notice of a closing. WARN includes back pay and benefits for up to the entire 60-day period during which employees and the community should have been notified. In addition, the WARN Act provides for payment of additional penalties to the community through a civil penalty of up to $500 for each day of violation, up to the full 60-days, that notice was not given.
