Paramount Global is facing a new lawsuit over the latest round of major companywide layoffs.
The proposed class action, filed in New York federal court on Thursday, alleges that the company failed to give more than 300 employees proper notice of their terminations in violation of the state’s Worker Adjustment and Retraining Notification Act, which requires at least 90 days notice of a mass layoff.
On Sept. 24, Paramount started “phase two” of its reductions as part of a sweeping plan to cut 15 percent of its workforce in pursuit of $500 million in cost savings. At the time, co-CEOs George Cheeks, Brian Robbins and Chris McCarthy said in a memo that “like the entire Media industry, we are working to accelerate streaming profitability while at the same time adjusting 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 took place the prior month. Those cuts included the shuttering of Paramount TV Studios, as well as the departure of a number of high-profile execs.
Thursday’s lawsuit, filed on behalf of Julian Hagins, says that roughly 295 employees who worked at its New York headquarters and at least 50 employees who were based in surrounding worksites were terminated, effective Sept. 30.
The workers seek wages, salary, commissions, bonuses, accrued holiday pay and benefits over a 60-day period that would’ve been paid out if Paramount complied with the law, according to the complaint.
Under the federal version of the law, companies with more than 100 employees are required to give notice before a layoff if it affects more than 500 people. Some states have stricter guidelines for employers. In California, any company with 75 or more workers requires notice for a layoff of 50 or more within a 30-day period. New York requires notice if the layoff impacts a third of the workforce or at least 250 employees at a single site.
The penalty for violating the law includes back wages and benefits in addition to paying a civil penalty.