Spirit Airlines Told Workers To Ignore Shutdown Rumors - Now They’re Suing For 60 Days Pay
View from the Wing • • business
Key Points:
- A proposed class action lawsuit alleges Spirit Airlines violated the WARN Act by terminating nearly its entire workforce on May 2 without providing the required 60 days' written notice.
- The lawsuit claims employees received misleading assurances prior to the layoffs, despite the airline publicly stating just weeks earlier that it planned to continue operations.
- Spirit defends its late notice by citing ongoing efforts to secure financing, including talks with lenders and the Trump administration for a taxpayer bailout that fell through at the last minute, blaming fuel price spikes for its collapse.
- The key legal issue centers on whether Spirit’s shutdown qualifies as an "unforeseeable business circumstance" exempting it from full WARN Act notice, with the airline arguing that early notice would have jeopardized funding opportunities.
- Potential damages could reach $200-$250 million in unpaid wages and benefits, with claims likely prioritized above equity holders but below secured creditors in bankruptcy proceedings.