Spirit Airlines announced the permanent shutdown of its operations earlier this month, but its employees are not done with the company just yet. Six former Spirit Airlines employees filed a class-action lawsuit against the organization for failing to provide sufficient notice preceding their terminations and withholding appropriate pay and benefits. The lawsuit comes as no surprise, as it was reported that Spirit Airlines employees only learnt the details of the dissolution of the company’s operations once the media reports broke. Early reports from the period stated that the airline had released a statement to its customers about winding down its 34-year operations and its efforts to bring its cabin and crew safely back to their home bases, however, employees remained unsure of what to expect without advance notice.
Spirit Airlines employees have filed a lawsuit against the company over lost wages after it abruptly announced plans to wind down operations. (Image: Freepik)
Spirit Airlines Faces a Class Action Lawsuit Over Matters of Pay and Abrupt Termination
The Spirit Airlines collapse is a tragedy to be sure, as the loss of the budget airline not only takes away affordable travel options, but thousands of jobs along with it. Such major changes come with challenges of varying calibres, with the lawsuit against Spirit Airlines the latest example of it. The case was filed in the Southern District of New York on behalf of former employees, and it claims that the organization was in violation of certain labor laws as a result of its abrupt closure.
Part of the lawsuit states that Spirit failed to provide notice as per the Worker Adjustment and Retraining Notification (WARN) Act, which requires a 60-day notice preceding mass closures or layoffs. Instead, they received an email from David Davis, Chief Executive Officer of Spirit, about the immediate cessation of operations.
Global News viewed the email, which stated, “We regret that we are not able to give you more notice of your layoff. We were not able to do so because the Company was actively seeking capital to avoid these layoffs and closures, and notice would have precluded the Company from obtaining the capital needed.”
The company was in active discussion with the U.S. government with regard to a rescue deal that could help it avoid this particular outcome. No details are available on why the negotiations failed, but the outcome of the discussion is now apparent.
Spirit Airlines Faces Allegations of Unpaid Wages over Accrued Sick Leave and Vacation Time
The 17,000 employees at the organization were offered payment until May 2, 2026, when the announcement was made. The lawsuit, however, states that many workers still haven’t received their final paychecks and that the offer did not come with compensation for unused vacation days and sick leave.
As for their demands from the lawsuit, workers are hoping to seek damages equal to 60 days of wages and benefits, as is typically provided under the WARN Act for all employees at the organization. The sudden loss of pay, benefits, and access to support tools guaranteed by an employer can be difficult for employees, and while Spirit agreed to compensate them for their unpaid wages until the date of the announcement, the absence of these additional support provisions can make the period of transition to another role twice as hard.
This marks a difficult time for Spirit Airlines after its attempts to keep the company afloat following its second bankruptcy filing last year. It also marks a similarly strained time for employees, many of whom were furloughed during the same period and have faced uncertainties ever since. The unfolding of this class action lawsuit should give us more insights into how the courts approach this case and how organizations should prepare for similar scenarios in the future.
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