What is the Flexsteel lawsuit?
In March 2021, a class-action lawsuit was filed against Flexsteel Industries, Inc., a Dubuque, Iowa-based furniture manufacturer, alleging that the company violated federal and state law when it laid off hundreds of workers in 2020 without providing severance pay or other benefits.
The lawsuit alleges that Flexsteel violated the Iowa Wage Payment Collection Act, the federal Worker Adjustment and Retraining Notification Act of 1988 (WARN Act), and the Employee Retirement Income Security Act of 1974 (ERISA).
The plaintiffs allege that Flexsteel was deep into a previously announced corporate restructuring when the COVID-19 pandemic hit in early 2020. The restructuring included the closure of plants in California, Arkansas, Mississippi, and Iowa.
The plaintiffs further allege that Flexsteel took advantage of the pandemic to lay off workers without providing them with the severance pay and other benefits to which they were entitled under law.
In May 2022, Flexsteel agreed to pay $1.3 million to settle the lawsuit. The settlement includes payments to class members, attorneys’ fees, and costs of litigation.
FAQs
Q: Who is eligible to receive a payment from the settlement?
A: Any person who was employed by Flexsteel in the United States and was terminated as a result of the company’s restructuring/downsizing/facility closure at any time during the period of January 1, 2020 through December 3, 2021, excluding individuals who signed releases and individuals on temporary assignment at Flexsteel, is eligible to receive a payment from the settlement.
Q: How will the settlement payments be calculated?
A: The settlement payments will be calculated based on years of Flexsteel employment and the individual workers’ pay level.
Q: When will I receive my settlement payment?
A: Settlement payments will be distributed to eligible class members after the court has granted final approval to the settlement and all appeals have been exhausted. This is expected to happen in early 2023.
Q: What if I have questions about the settlement?
A: If you have questions about the settlement, you can contact the settlement administrator at (888) 369-3780 or visit the settlement website at www.FlexsteelClassActionSettlement.com: https://www.flexsteelclassactionsettlement.com/.
Q: Do I need to hire a lawyer to participate in the settlement?
A: No, you do not need to hire a lawyer to participate in the settlement. However, if you have any questions about your legal rights, you may want to consult with an attorney.
Conclusion
The Flexsteel lawsuit is a reminder that employers have a legal obligation to provide severance pay and other benefits to workers who are laid off due to corporate restructuring or other business decisions. If you have been laid off from your job and believe that you may be entitled to severance pay or other benefits, you should contact an attorney to discuss your legal rights.
Please note: This information is not intended to be legal advice. If you have any questions about your legal rights, you should consult with an attorney.
References
- Iowa-based Flexsteel agrees to $1.3 million settlement with laid-off workers: https://www.desmoinesregister.com/story/news/2022/05/03/dubuque-iowa-flexsteel-pay-settlement-laid-off-workers/9634507002/
- Carroll et al v Flexsteel Industries Inc et al: https://www.flexsteelclassactionsettlement.com/
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