ROCHESTER, N.Y. (WROC) — Following an investigation into RealEats’ abrupt closure in Geneva, the New York State Department of Labor confirmed that the company makes an exception for WARN regulations.
After the Geneva store closed back in the beginning of March, a former employee of the store filed a lawsuit claiming that she and several employees were not given 60 days’ notice prior to getting laid off.
The WARN Act says that companies employing at least 100 people must give 60 days notice prior to being laid off, but the Dept. of Labor says that RealEats meets an exception.
According to the WARN Regulations, an employer may seek an exception if they provide to the Dept. of Labor a statement and documents to be eligible for the exception. To be eligible, a business has to prove that unforeseeable consequences led to the layoff.
It has not been specifically confirmed what led to RealEats getting the exception, the WARN rules on exceptions addressed a loss of capital points. The CEO of RealEats shared with News 8 an email sent to employees saying that a company lender swept cash from their bank accounts.
The Department of Labor said they will continue to help employees to make sure they have access to unemployment support and re-employement resources.