Spirit Airlines Hit With Class Action Lawsuit Over Mass Layoffs and Unpaid Wages
Former employees of Spirit Airlines have filed a proposed class-action lawsuit accusing the airline of violating the federal WARN Act by abruptly shutting down operations and laying off thousands of workers without advance notice.
The lawsuit, filed May 12 in U.S. Bankruptcy Court for the Southern District of New York, argues the company failed to provide the 60-day written notice required under the Worker Adjustment and Retraining Notification Act, commonly known as the WARN Act. Workers say they learned the airline was ceasing operations through a May 2 email from CEO David Davis stating the company had “decided to cease operations immediately.”
Spirit, known for its ultra-low-cost flights and bright yellow planes, had operated hundreds of daily routes across the United States before ending operations on May 2. The airline shut down after months of financial struggles despite previously emerging from bankruptcy proceedings, leaving roughly 17,000 employees without jobs.
According to the complaint, employees were allegedly told the airline planned to continue operating despite growing rumors about a possible shutdown. Workers also claim they have not received final paychecks, unused vacation pay, or unused sick time following the closure.
The lawsuit seeks compensation tied to unpaid wages, continued medical coverage, retirement contributions, and other employment benefits that former employees argue were lost after the airline ceased operations.
The dispute centers on the WARN Act, a federal labor law passed in 1988 that generally requires larger employers to provide workers with at least 60 days' notice before mass layoffs or business closures. The law was designed to give employees time to prepare for job losses, seek new work, or arrange continued healthcare and financial support.
Spirit argued in WARN notices filed with Florida agencies that the airline could not provide earlier notice because it was still negotiating with lenders and seeking additional financing that management believed could have prevented the shutdown.
Cases involving financially troubled companies often focus on whether employers were still attempting to secure financing or avoid layoffs before shutting down operations.
Former employees are also challenging Spirit’s separate bankruptcy court request seeking approval of approximately $10.7 million in retention bonuses for senior executives and certain employees involved in winding down operations, while also seeking unpaid wages and benefits.
