Paramount Global is facing a new lawsuit over its latest round of massive company-wide layoffs.
A proposed class action lawsuit filed Thursday in New York federal court alleges that Paramount violated the state’s Worker Adjustment and Retraining Notification Act, which requires at least 90 days’ notice of layoffs to more than 300 employees. It alleges that it failed to provide proper notice. Mass layoffs.
The company denied the allegations in a statement. “Paramount employees who are eligible to receive a federal or state warning notice will receive one,” it added.
Paramount on September 24 began a “second phase” of job cuts as part of a sweeping plan to cut 15 percent of its U.S.-based workforce in an effort to cut costs by $500 million. At the time, co-CEOs George Cheeks, Brian Robbins and Chris McCarthy said in a memo: “Like the entire media industry, we are committed to accelerating the profitability of streaming while simultaneously “We are working to adapt to the evolving landscape of our business.” They noted that 90 percent of the company’s workforce reductions have been completed.
The first layoffs took place last month. These layoffs included the closure of Paramount Television Studios and the departure of a number of high-profile executives.
Approximately 295 employees who worked at the company’s New York headquarters and at least 50 others based at surrounding workplaces were fired on Sept. 30, according to a lawsuit filed Thursday on behalf of Julian Heggins. He was fired.
According to the complaint, the workers are seeking wages, salaries, commissions, bonuses, unpaid holiday pay and 60 days of benefits that they would have been paid if Paramount had complied with the law.
Under the federal version of the law, companies with 100 or more employees are required to give notice before laying off more than 500 employees. Some states have stricter guidelines for employers. In California, businesses with 75 or more employees must notify layoffs of 50 or more employees within 30 days. In New York State, notice is required if the layoff affects one-third of the workforce or at least 250 employees at one location.
Penalties for violating the law include unpaid wages and benefits in addition to the payment of civil penalties.
Oct. 3, 12:44 p.m. This article has been updated with a statement from Paramount Global.