Nov 19, 2008

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DHL Employees Sue Over Layoffs

Two Chicago-based DHL employees have sued the shipping giant, which recently re-tooled its US operations, claiming the company violated federal law when it layed them off.  From Crain’s:

The men are seeking class-action status limited to effected DHL Express employees in the Chicago area. They want a judge to rule that DHL Express violated the federal Worker Adjustment and Retraining Notification Act and require the company to comply with the law.

The Worker Adjustment and Retraining Notification Act (or WARN) requires that companies with over 100 employees provide at least 60 days notice if it plans to lay off 500 employees or 33% of its workforce.  The notification requirements apply to labor and management alike.  Companies that don’t fit WARN’s requirements often fall into similar state laws. 

Most employment attorneys have expected class actions such as this to rise with the recent spate of RIFs.  As companies deal with a quickly-changing market, many are having to make hasty decisions just to stay afloat.  Whether or not the employees’ suit proves effective, it will hopefully be a cautionary tale reminding executives to call their labor attorneys before making business decisions.