Know how on Friday, Fisker laid off about 75% of its staff Know how on Friday Fisker fired 75% of its workforce without any prior warning and no severance package? Turns out you can’t do that in the state of California. Fisker Automotive now faces a Federal lawsuit seeking 60 days wages for all the affected employees.
And so this sad story marches on.
Under the U.S. Worker Adjustment and Retraining Notification, or WARN Act, employers must give employees 60 days advance notice that they are being termination. The lawsuit, this morning, seeks the unpaid wages for all of the employees. The point of severance packages is to typically avoid this exact situation. Now Fisker has to spend money sending lawyers around to defend their frankly indefensible actions.
Fisker also failed to notify state and local worker boards, and as a result may end up paying many millions of dollars in additional fines. If Fisker is forced to liquidate its assets, then this will end up being a truly embarrassing end for a once-promising automaker. And quite frankly, if Chinese automakers aren’t interested, who else would be?
Source: Automotive News