A class action lawsuit has been filed against the two companies for allegedly failing to provide employees with 60 days advance notice before the SanduskyAthol plant closed in Butner, NC. The lawsuit was filed on behalf of all employees affected by the closure and claims Athol Manufacturing Corp. and its holding company, SAI Holdings Ltd., violated the Worker Adjustment and Retraining Notification Act ("WARN Act").
The WARN Act is a federal law that requires large companies to provide 60 day advanced written notice to both employees and local government before a mass layoff or plant closing. The law, passed in 1988, provides displaced workers with time to seek other employment or retraining opportunities before losing their jobs.