The Illinois Department of Labor is seeking more than $3.8 million in back wages for over 350 Illinois-based former employees of Outfox Hospitality, the short-lived parent company of Foxtrot and Dom’s Kitchen and Market that went bankrupt in May.
IDOL on Oct. 30 filed separate federal bankruptcy claims against Outfox and its two subsidiaries, Dom’s and Foxtrot, after the retailers closed all stores and laid off their employees in April without sufficient notice.
The Worker Adjustment and Retraining Notification Act, requires that employers with more than 75 employees give workers 60 days’ notice before large-scale layoffs and closures in most circumstances. Companies that don’t oblige may be required to pay affected workers for the period of the violation, as well as civil penalties for up to $500 per day of the violation.
When Outfox ceased operations, IDOL requested the company provide payroll documents in addition to other evidence that it followed the WARN Act. Outfox asked for an extension before ultimately telling the department it was filing for bankruptcy, which “halted IDOL’s collection efforts on behalf of the affected employees,” according to the announcement.
“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,” said IDOL Director Jane Flanagan in the release.
This isn’t the only legal issue raised by Outfox’s sudden bankruptcy. A former worker also sued the company in Illinois for failing to abide by the WARN Act. That case is currently on hold pending the outcome of the ongoing bankruptcy, according to the court docket.
While the old version of Foxtrot goes through its bankruptcy proceedings, the popular c-store chain has begun reopening under a new company helmed by its original founder, Mike LaVitola.