United Furniture Industries faces lawsuit over 2,700 layoffs

United Furniture Industries laid off about 2,700 employees via emails and text messages.

The plaintiff, a former employee of eight years, is challenging the Mississippi-based company over a claim that it is a violation of the federal Worker Adjustment and Retraining Notification WARN Act.

Under certain conditions, the WARN Act requires that employers give their workers 60 days' notice before a plant closing or mass layoff.

As soon as possible, all businesses are encouraged to give notice to the state Dislocated Worker Unit. The Labor Department notes that some states have plant closure laws, and those state laws may impose additional requirements on their websites.

In a statement to The Hill, Jack Simpson, the attorney for the former employees, said they weren't given that warning or 60 days of severance pay.

I have spoken to a husband and wife who both lost their job at the same time, an individual who has stomach cancer and is worried about affording his medication, and another who has to decide between postponing a surgery or paying medical expenses out of pocket. He said that this is a tragic situation that is hard to understand.

Simpson told the outlet that more than 100 of the furniture company's ex-employees have now hired his firm, in addition to Toria Neal.

The layoffs, due to unforeseen business circumstances, were expected to be permanent and all benefits would be terminated without provision of COBRA, the federal law that gives people who lose their jobs an option to keep their employer-sponsored health insurance coverage under some circumstances.

While many of them live in northeast Mississippi, layoffs took place at North Carolina and California locations.

WFMY found out last week that the company had not filed a WARN notice ahead of layoffs in North Carolina.

According to the North Carolina Department of Commerce, not every company must file a WARN, based on the circumstances of their particular situation. One of the exceptions is unforeseen business circumstances.

FOX Business requests for comment from Simpson and United Furniture Industries were not returned.