Strauss Borrelli PLLC, a leading class action law firm, is investigating Party City regarding its recent nationwide mass layoff and closure. The WARN Act is a federal law that requires certain employers to notify their employees, in writing, at least 60 days before a plant closing or mass layoff takes effect. As a result, we believe Party City employees may be entitled to sixty days of severance pay and benefits.
WHAT HAPPENED?
On December 20, 2024, Party City’s CEO, Barry Litwin, told corporate employees in a meeting that Party City will be “winding down” operations immediately and that December 20th would be their last day of employment. Staff were told that they will not receive severance pay, and they were told their benefits would end as well.1
ABOUT THE WARN ACT:
The WARN Act is a federal law passed in 1988 by Congress that requires employers with 100 or more employees to provide a 60-day notice of significant layoffs or plant closings. This notice gives workers and their families time to prepare for job loss, seek new employment, and pursue training or retraining opportunities. The WARN Act aims to reduce the impact of sudden job loss on workers and communities by ensuring they have sufficient time to transition. Generally, employees must receive a WARN Act notice if they are laid off or if their hours are cut by 50% or more in any six-month period because of a plant closing or mass layoff. It is possible that a temporary layoff may still violate the WARN Act if it ends up lasting longer than six months.
Employers who do not follow the WARN Act rules, either by giving notice too late or providing unclear notices, may have to pay employees back pay and benefits for the time they were in violation.
ABOUT PARTY CITY:
Party City, headquartered in Woodcliff Lake, New Jersey, is North America’s largest party goods retailer, the go-to shopping destination for different types of celebrations. The company also operates Amscan, a designer, manufacturer, and distributor of celebration products including décor, tableware, costumes, and accessories.2
If you or someone you know were laid off from Party City:
We would like to speak with you about your rights and potential legal remedies in response to this data breach. Please fill out the form, below, or contact us at 872.263.1100 or sam@straussborrelli.com.
