Strauss Borrelli PLLC, a leading class action law firm, is investigating Nikola Corporation regarding its recent mass layoff in Coolidge, Arizona and Phoenix, Arizona. 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 Nikola Corporation employees may be entitled to sixty days of severance pay and benefits.
WHAT HAPPENED?
On February 19, 2025, Nikola Corporation notified the Arizona Department of Economic Security of its decision to lay off employees after filing for Chapter 11 Bankruptcy. The federal law, known as, the Worker Adjustment and Retraining Notification (WARN) Act, requires covered employers to provide 60 days’ prior written notice to employees, their representatives, and certain government parties in the event of a mass layoff or plant closing. However, Nikola Corporation failed to provide at least 60 days’ notice before laying off 540 employees in Phoenix and 315 employees in Coolidge and therefore potentially violating the WARN Act.
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.
If you or someone you know were laid off from Nikola Corporation. We would like to speak with you about your rights and potential legal remedies. Please fill out the form below or contact us at 872.263.1100 or sam@straussborrelli.com
ABOUT NIKOLA CORPORATION:
Nikola Corporation, headquartered in Phoenix, Arizona, is working to develop innovative energy and transportation solutions. It will allow customers to integrate next-generation truck technology, hydrogen fueling infrastructure and maintenance. Its goal is to be a leader in zero-emission transportation.1
If you or someone you know were laid off from Nikola Corporation:
We would like to speak with you about your rights and potential legal remedies. Please fill out the form below or contact us at 872.263.1100 or sam@straussborrelli.com.
