New York CNN —
In early February, Diane Zaccagna learned that the Bed Bath & Beyond store in New Jersey where she had been working for 18 and a half years was closing and she would be laid off.
“We knew Bed Bath was in trouble, but we thought we would have at least a couple more years,” said Zaccagna, 50, who started out as a part-time employee and climbed her way to a merchandise supervisor.
Zaccagna loved working for Bed Bath & Beyond and said the company treated her well. Even during the depths of the Covid-19 pandemic in 2020, when the deadly virus was spreading and Bed Bath & Beyond temporarily closed stores to customers, she showed up to help ship out online delivery orders.
Managers initially told Zaccagna and around 25 employees at the store that they would receive severance pay. Bed Bath & Beyond has been on bankruptcy watch and has been closing hundreds of stores since late 2022.
Laid-off workers at previously shuttered stores received severance packages, and so Zaccagna assumed it would be the same for her store. The severance plan for full-time workers laid off in earlier rounds of Bed Bath & Beyond closures was one week of regular pay for each year of service, with a maximum of 10 weeks severance. For supervisors, the maximum was 12 weeks of severance pay.
But Bed Bath & Beyond never paid severance to Zaccagna and her co-workers. The company also told employees it would not match annual contributions to their 401(k) retirement savings...
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