Former Spirit Airlines employees have filed a proposed class-action lawsuit against the carrier, alleging the company failed to provide legally required notice before abruptly shutting down operations and terminating its workforce.
The lawsuit, filed in U.S. Bankruptcy Court for the Southern District of New York, follows Spirit’s sudden collapse on May 2.
The closure left approximately 17,000 employees without work. Six former employees from Florida are leading the legal action, claiming the airline violated the federal Worker Adjustment and Retraining Notification Act.
Under the federal WARN Act, employers are generally required to provide at least 60 days of written notice before a mass layoff or plant closing.
According to the court filing, employees were not afforded this window. Instead, they were informed of the shutdown via a company-wide email from CEO David Davis, which stated the airline had “decided to cease operations immediately,” as reported by NBC News.
The plaintiffs argue that the company’s immediate closure was a direct violation of their rights.
Eric Lechtzin, one of the attorneys representing the former employees, explained that the lawsuit is designed to secure the compensation that would have been paid during a legal notice period.
“We’re suing for, first of all, 60 days of unpaid wages, which is essentially a penalty for failing to provide notice prior to the closure of the company under the Worker Adjustment and Retraining Act of 1988,” Lechtzin told NBC News.
Beyond basic wages, the lawsuit seeks to recover a full range of benefits that disappeared when the company folded. This includes the continuation of medical coverage, retirement contributions, and payment for unused vacation and sick time.
Lechtzin said many former workers were facing significant personal crises as they attempted to navigate the loss of their livelihoods and their health insurance.
“They tell me that they have chronic medical conditions or family members with medical conditions, and they don’t know what they’re going to do for medical coverage,” Lechtzin said. “They’re scrambling for a lifeline, like unemployment, but that only covers a fraction of what they earned in their job, so it’s a hardship to say the least.”
The lawsuit further highlights a motion filed by Spirit in bankruptcy court seeking approval for $10.7 million in retention bonuses for senior executives during the company’s wind-down. This request comes as some former staff report they have yet to receive their final paychecks.
In WARN notices filed with state agencies after the shutdown, the airline argued that it delayed the announcement because it had still been negotiating for financial assistance from lenders and the federal government.
“We regret that we are not able to give you more notice of your layoff,” the airline stated in letters attached to the lawsuit. “We were not able to do so because the company was actively seeking capital to avoid these layoffs and closures, and notice would have precluded the company from obtaining the capital needed.”
A spokesperson for Spirit Airlines told The Independent the company would not comment on pending litigation.
