A class action has been filed against defunct law firm Brobeck, Phegler, & Harrison, LLP, and its successor, Morgan, Lewis, & Bockius, LLP, on behalf of employees who allege that they were laid off in February 2003 without being given the 60-day notice required by the California Worker Adjustment and Retraining Notification (WARN) Act. The action seeks 60 days of pay as allowed by the act, and 60 days of benefits.
The action alleges that in January 2003, Morgan Lewis began overseeing the day-to-day operations in the Brobeck law firm as part of a plan to assume ownership of its assets as Brobeck went into liquidation. When Brobeck announced on January 30, 2003, that it would be closing the firm soon, all employees were allegedly required to continue working until further notice. On January 31, Brobeck allegedly suspended its medical spending account and other benefits for its employees. The action alleges that on February 12, 2003, Morgan Lewis announced that it would be in charge of all Brobeck operations, and the next day released a press release that indicated that Morgan Lewis was expanding its operations to the U.S. West Coast.
On February 13, 2003, a memo was allegedly circulated to approximately 200 Brobeck employees that stated: "The Firm anticipates that the bank will not release sufficient funds to meet payroll beyond a few more days. Accordingly, the Firm has no choice other than to inform you that your last day of work will be this Friday, February 14, 2003."
The California WARN Act requires that any business enterprise with 100 or more employees give 60 days of notice before a plant closing or mass layoff. Workers who suffer an "employment loss" without receiving the proper notice may sue for compensation