Prairie State Wire

The Illinois Department of Labor (IDOL) is actively working to recover over $3.8 million in back wages and benefits for more than 350 workers who were laid off unexpectedly after their employers closed operations.

On October 30th, IDOL, through the Office of the Attorney General, filed three federal bankruptcy claims against Outfox Hospitality, LLC; Dom's Kitchen and Market, LLC (Dom's); and Foxtrot Market (Foxtrot). The claims seek compensation for back wages and benefits owed to employees due to a failure by these businesses to provide the mandatory 60-day notice under the Illinois Worker Adjustment and Retraining Notification Act (WARN).

In April, Dom's, Outfox, and Foxtrot informed their workers that they would be closing immediately. In response, IDOL reminded these companies of their obligation to give adequate closure notice as per WARN requirements. Despite initial indications from the businesses about needing more time to supply requested documents, they later declared bankruptcy. This declaration halted IDOL's efforts to collect financial records on behalf of affected employees.

Although Foxtrot reopened some stores in September, IDOL has continued its attempts to recover owed wages by pursuing priority wage claims in federal bankruptcy proceedings.

"The Illinois Department of Labor works every day to protect and recover unpaid wages owed to workers across the State," said IDOL Director Jane Flanagan. "In cases such as these, the Department is committed to pursuing all legal paths against employers who fail to abide by their obligations under WARN."

Illinois Attorney General Kwame Raoul expressed his support: "I will continue to partner with the Illinois Department of Labor to protect workers and ensure their rights on the job."

Under the Illinois WARN Act, employers with at least 75 full-time employees must notify both workers and state/local government officials 60 days before a closure or mass layoff. Employers failing this requirement are liable for back pay and benefits up to a maximum of 60 days during which notice was not given. Additionally, they may face civil penalties amounting up to $500 for each day of violation.

Employees in Illinois who suspect their employer has violated WARN obligations can file complaints online directly with IDOL.