Strauss Borrelli PLLC, a leading class action law firm, is investigating Prospect Medical Systems LLC regarding its recent mass layoff in Orange, California. 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 Prospect Medical Systems employees may be entitled to 60 days of severance pay and benefits.
WHAT HAPPENED?
On June 20, 2025, Prospect Medical Systems notified the California Employment Development Department of its decision to conduct a mass layoff at its facility in Orange, California. 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. We are investigating whether Prospect Medical Systems failed to provide at least 60 days’ notice before laying off 125 employees and, therefore, violated 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 was laid off from Prospect Medical Systems, 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 PROSPECT MEDICAL SYSTEMS:
Prospect Medical Systems, headquartered in Orange, California, is a physician group management company. It supports a network of Independent Physician Associations and medical groups across several states, including California, Texas, Rhode Island, and Connecticut. It provides administrative and operational services, ranging from claims processing and care management to data analytics and provider relations, for more than 600,000 members and over 20,000 healthcare providers.
If you or someone you know were laid off from Prospect Medical Systems:
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.
