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Press Release - Thursday, December 05, 2024
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IDOL Works to Compensate Hundreds of Laid Off Workers
CHICAGO - The Illinois Department of Labor (IDOL) is continuing to seek recovery of over $3.8 million in back wages and benefits for over 350 displaced workers after their employers abruptly closed.
On October 30th, IDOL, through the Office of the Attorney General, filed three separate federal bankruptcy claims against Outfox Hospitality, LLC; Dom's Kitchen and Market, LLC (Dom's); and Foxtrot Market (Foxtrot) seeking back wages and benefits owed to its employees when the businesses failed to provide the required 60-day notice under the Illinois Worker Adjustment and Retraining Notification Act (WARN).
In April, Dom's, Outfox, and Foxtrot informed workers the businesses were immediately closing. In response, IDOL notified the three businesses of their obligations to provide sufficient notice of closure under WARN and sought payroll records and other documents. While the businesses had initially indicated the need for additional time to provide the requested documents to IDOL, they later notified the Department that they were filing for federal bankruptcy protection and would not comply with the request for financial records, as the bankruptcy proceeding halted IDOL's collection efforts on behalf of the affected employees.
While Foxtrot re-opened some stores in September, IDOL continued attempts to recover the wages and benefits owed under WARN by pursuing priority wage claims in the federal bankruptcy proceedings.
"The Illinois Department of Labor works every day to protect and recover unpaid wages owed to workers across the State," said IDOL Director Jane Flanagan. "In cases such as these, the Department is committed to pursuing all legal paths against employers who fail to abide by their obligations under WARN."
"I will continue to partner with the Illinois Department of Labor to protect workers and ensure their rights on the job," said Illinois Attorney General Kwame Raoul.
The Illinois WARN Act requires employers with 75 or more full-time employees to give workers and state and local government officials 60 days advance notice of a closure or mass layoff. An employer that fails to provide notice as required by law is liable to each affected employee for back pay and benefits for the period of the violation, up to a maximum of 60 days. The employer may also be subject to a civil penalty of up to $500 for each day of the notice violation.
Illinois employees who believe their employer has violated their obligations under WARN may file a complaint online directly with IDOL.
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