Paramount Global is facing new litigation over the latest round of major company-wide layoffs.
the Proposed class actionThe lawsuit filed in New York federal court on Thursday alleges that Paramount failed to give more than 300 employees adequate notice of their termination in violation of the state’s Worker Adjustment and Retraining Notification Act, which requires at least 90 days’ notice of mass layoffs.
The company denied these accusations in a statement. “Prominent employees who are entitled to a federal or state warning notice receive one,” she added.
On September 24, Paramount began “Phase Two” of its cuts as part of a comprehensive plan to cut 15% of its US workforce in an effort to achieve $500 million in cost savings. At the time, co-CEOs George Cheeks, Brian Robbins and Chris McCarthy said in a memo: “Like the entire media industry, we are accelerating streaming profitability while simultaneously adapting to the evolving landscape in our traditional businesses.” They noted that 90 percent of the company’s layoffs have been completed.
The first round of layoffs had occurred the previous month. These cuts included the closure of Paramount Television Studios, as well as the departure of a number of prominent executives.
Nearly 295 employees who worked at its New York headquarters and at least 50 employees who were stationed at surrounding work sites have been terminated, as of Sept. 30, the lawsuit filed Thursday on behalf of Julian Huggins says.
The workers are seeking wages, salaries, commissions, bonuses, accrued vacation pay and benefits over a 60-day period that would have been paid if Paramount had complied with the law, according to the complaint.
Under the federal version of the law, companies with more than 100 employees must provide notice before a layoff if it affects more than 500 people. Some states have stricter guidelines for employers. In California, any business with 75 or more workers requires notice of layoffs of 50 or more workers within a 30-day period. New York requires notice if a layoff affects one-third of the workforce or at least 250 employees at one location.
The penalty for violating the law includes back wages and benefits in addition to paying a civil penalty.
October 3, 12:44 p.m This story has been updated with a statement from Paramount Global.
. “Professional creator. Lifelong thinker. Reader. Beer buff. Troublemaker. Evil problem solver.”