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Hooters has been hit with a class action lawsuit by former employees who claim the restaurant unfairly conducted a “mass layoff” during the COVID-19 pandemic.
Plaintiffs Ashton Scott and Amanda Seals say that 679 former Florida employees of Hooters are seeking damages in the amount of 60 days compensation and benefits after the restaurant violated the Worker Adjustment and Retraining Notification Act (WARN).
The Hooters employees say they were let go on March 25, 2020 without 60 days advanced written notice as required under the WARN Act.
The plaintiffs claim that Hooters gave workers no advance notice, and instead notice was given on the same day that the employees were laid off.
“In violation of the WARN Act, Defendant failed to provide as much written notice as was practicable under the circumstance surrounding the COVID-19 pandemic, and also failed to provide a statement of the basis for reducing the notification period to zero days advance notice,” the Hooters class action lawsuit claims.
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The employees state that Hooters could have evaluated the impact of COVID-19 on its workers, prior to the date that they were terminated. They note that being let go has had a detrimental economic impact on their lives.
Even though Congress had made available small business loans, known as the “Paycheck Protection Program,” Hooters still decided to engage in mass layoffs, which further underscores the severity of the WARN Act violations, the plaintiffs state.
Scott alleges that she has worked at Hooters since 2012 and Seals claims to have worked there since 2006.
The layoffs on March 25, 2020 resulted in the loss of employment of 50 full-time employees at the plaintiff’s location, which consists of at least 33 percent of the full-time employees at the restaurant chain, the plaintiffs claim.
The workers argue they were fired without cause and experienced an employment loss due to the mass layoffs.
“The Plaintiffs’ claims are typical of the claims of the other members of the Class in that for each of the several acts of Defendant described above, the Plaintiffs and the other Class members is an injured party with respect to his/her rights under the WARN Act,” the Hooters class action lawsuit states.
Restaurants have been reportedly hit hard due to the coronavirus pandemic. Some restaurants have filed claims with their insurance carrier in an attempt to recover lost revenue due to the coronavirus pandemic.
For example, two restaurants owned by well known chef Thomas Keller have filed suit against their insurance company for denying claims under their business interruption insurance policies. The French Laundry and Bouchon Bistro had to shut their doors because of the coronavirus outbreak and claims that their businesses deserve payments under their “all risks” insurance policies.
The restaurants report that their business interruption insurance policies include “civil authority” coverage which would protect them from losses that result from government-mandated closures. The businesses claim that the virus is a form of “physical loss” that would arise due to the coronavirus outbreak.
A similar lawsuit was filed by Oceana Grill, a restaurant in New Orleans. The eatery claims that their establishment should be covered in their insurance policy’s business interruption insurance.
Because the restaurant was forced to close down for in-person seating, Oceana Grill claims that their insurance company should pay them for losses under their business interruption insurance policy.
Oceana Grill states that their insurance company provides an “all risks” insurance coverage which includes an extension in the event of a civil authority-ordered business closure. The restaurant claims that they should be covered for any losses due to the coronavirus.
Common questions of law and fact in this Hooters class action lawsuit include: 1) that all Class Members were employed by the defendant; 2) that the defendant terminated the employment of the plaintiffs and Class Members without cause; 3) the defendant terminated the plaintiffs and Class Members without giving them 60 days prior notice which is required by the WARN Act; 4) and that the defendants failed to pay the the plaintiffs and other Class Members for a 60 day period following their termination.
Prospective Class Members in the Hooters class action lawsuit include: “All Hooters employees throughout Florida who were not given a minimum of 60 days’ written notice of termination and whose employment was terminated on or about March 25, 2020, as a result of a ‘mass layoff’ or ‘plant closing’ as defined by the Workers Adjustment and Retraining Notification Act of 1988.”
The plaintiffs are represented by Luis A. Cabassa and Brandon J. Hill of Wenzel Fenton Cabassa PA and Chad A. Justice of Justice for Justice LLC.
The Hooters Coronavirus Closures Class Action Lawsuit is Scott, et al. v. Hooters III Inc., Case No. 8:20-cv-882, in the U.S. District Court for the Middle District of Florida.
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