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Laid off Hostess workers eye payment of wages, benefits under WARN Act
By Caroline Salls
Pittsburgh, Nov. 21 - A group of former Hostess Brands, Inc. employees filed a class action lawsuit Wednesday in connection with the company's mass layoff, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.
The former employees said more than 15,000 employees were immediately laid off on Nov. 21 or will be laid off within 30 days of that date as a result of Hostess' decision to liquidate the company and close down the majority of its operations.
According to the lawsuit, the employees were terminated without cause as part of the plant closings and layoffs and were not provided 60 days' advance written notice of their terminations as required by the Worker Adjustment and Retraining Notification Act (WARN Act).
As a result, the plaintiffs are looking to recover 60 days' wages and benefits. The employees said their claims are entitled to first-priority administration expense status or wage priority status.
Hostess Brands is an Irving, Texas-based operator of regional bakeries. The company filed for bankruptcy on Jan. 11, 2012. Its Chapter 11 case number is 12-22052.
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