UnitedHealth Group and Optum violated state and federal employee notification laws during mass layoffs that occurred earlier this year, two former employees allege in a lawsuit filed Oct. 30 in a California federal court.
The two plaintiffs are California residents and claim UnitedHealth violated the WARN Act when it laid off more than 1,000 employees nationwide in August, including 700 in California, without proper notice. WARN requires large employers to provide 60 days' public notice, or 60 days of payment in lieu of prior notice, when mass layoffs or facility closures are planned.
"Without informing terminated employees and members of the plaintiff class of their WARN Act rights to 60 days of notice or pay in lieu of notice, UnitedHealth solicited releases from the former employees, which provide less wages for many than the WARN Act notice requirements mandate," the plaintiffs' attorneys wrote. "In essence, members of the plaintiff class have been fraudulently induced to accept severance pay packages that provide less than 60 days of wages.
The plaintiffs are seeking a jury trial, all payments and benefits allegedly owed, and a declaration that WARN notices were required and releases are void. They are also seeking class-action status for other affected employees within and outside California.
“We believe this suit to be without merit and will defend ourselves vigorously," UnitedHealth Group told Becker's.
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