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Spirit Workers File Class Action Over Sudden Shutdown, Citing WARN Act Violations

The case will test Spirit’s claim that urgent funding talks excused the lack of advance notice.

Overview

  • Six former employees filed a proposed class action Tuesday in U.S. Bankruptcy Court in New York seeking 60 days of pay and benefits under the WARN Act, a federal law that requires 60 days’ written notice for mass layoffs.
  • The complaint says Spirit ended operations on May 2 with no advance warning to roughly 17,000 workers and alleges many still have not received final paychecks or continued health coverage.
  • Plaintiffs also seek payment for unused vacation and sick time and continuation of medical and retirement contributions for the 60‑day notice period required by law.
  • Spirit’s WARN letters say the company delayed notice because it was pursuing new capital, including talks with the federal government for a reported $500 million rescue, and that earlier notice would have blocked that funding.
  • The suit highlights a Spirit motion to pay about $10.7 million in retention bonuses during the wind‑down, and any recovery for workers will depend on bankruptcy priorities and court approval of competing claims.