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A proposed $17.3 million settlement has been reached in a case alleging that the Blackjewel coal firm in Wyoming abruptly closed its coal mines without proper notification and compensation of the affected coal miners as required by federal labor law.
The coal miners had filed their class action lawsuit in 2019 after Blackjewel declared bankruptcy and closed dozens of mines throughout the United States, including two in Wyoming, according to the Casper Star-Tribune.
Blackjewel closed the mines abruptly and sent workers home with no notice or information about the future of the company.
About 1,700 coal miners in the U.S. participated in the class action lawsuit, accusing Blackjewel of violating federal labor laws.
According to the class action lawsuit, Blackjewel’s conduct violated the Worker Adjustment and Retraining Notification Act, or WARN Act, the Star-Tribune reported.
Miners claimed Blackjewel CEO Jeffrey Hoops did not provide sufficient written notice of the coming layoffs. He also allegedly did not offer 60 days’ worth of wages.
Then-CEO Jeffrey Hoops did not give sufficient written notice of the layoffs, nor did he offer 60 days of wages. Under the WARN Act, the workers would legally be entitled to wages and benefits.
The mines have since reopened under new owners, but Blackjewel’s case is continuing in federal bankruptcy court, according to the Star-Tribune.
That means it is unclear how much money there will be for the miners.
Assets recouped during the bankruptcy process will first be distributed to Blackjewel’s creditors who are owed money, the Star-Tribune reported. Secured creditors are paid first, followed by unsecured debtor-in-possession lenders, then workers.
However, counsel have secured an elevated ranking for the workers, the Star-Tribune reported, meaning the miners will be a bit higher on the list of creditors than they would have been.
The settlement is expected to go before a judge for approval in early March, the Star-Tribune reported.
If the Blackjewel settlement is approved, the miners would receive 60 percent of about two months’ worth of wages, in addition to the equivalent of eight days of work, court documents show, according to the Star-Tribune.
Have you ever had your job terminated with little or no notice? Tell us about it in the comment section below.
The plaintiffs are represented by Ned Pillersdorf.
Case information was not available.
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One thought on Blackjewel, Miners Reach $17.3M Settlement in WARN Act Class Action Lawsuit
It’s been 4 years since black jewel coal closed. The employees still haven’t gotten any of the settlement money and most haven’t heard anything about when of even if we will get what we’re owed.