Thread regarding ITT Educational Services Inc. layoffs

ITT Lawsuit

Fresh off the press... Two guys have started an #ITTLawsuit - the attorney representing them represented Corinthian folks as well (knows his stuff)... The source Link is at the bottom:

ITT Employees Sue Over Sudden Mass Layoff

A laid-off teacher and an office staffer at ITT Educational Services filed a lawsuit Tuesday seeking class-action status on behalf of the 8,000 employees caught up in the closure of the embattled for-profit school operator.

The lawsuit seeks to hold the Indiana company to account for failing to give the 60-days notice required under federal law when large numbers of employees are terminated en masse.

ITT on Tuesday suddenly announced it was closing some 130 locations, due to a decision by the federal government to cut off financial aid to new students.

A spokeswoman for ITT couldn’t immediately be reached for comment Tuesday on the lawsuit, which invokes the federal Worker Adjustment Retraining and Notification Act, or WARN Act.

ITT Tuesday blamed government action for its sudden decision to close its doors immediately, and called the federal funding cutoff for new students “inappropriate and unconstitutional.”

The closure affected some 40,000 students, as well as thousands of employees,

It is too soon to tell how many ITT employees can shelter under the WARN Act, said Jack Raisner, the New York lawyer representing the ITT workers in the suit.

The law applies only to locations with 50 or more employees. Employees of smaller ITT campuses might be unprotected by the law, which entitles them to pay and benefits in lieu of notice, Mr. Raisner said.

Filed in Delaware, the WARN Act lawsuit was brought in the names of a headquarters employee, business analyst Allen Federman, and an instructor at three California campuses, Steve Ryan.

Some employees at ITT headquarters said they received emails Friday telling them to take an extra-long Labor Day weekend and not to report for work on Tuesday.

“People were blowing money all weekend, not knowing they were fired,” Mr. Raisner said. “That’s ruffled some feathers.”

Mr. Raisner also represented employees of Corinthian College, another for-profit school chain that closed down after the federal government withdrew aid.

ITT, like Corinthian, could have defenses to claims it violated federal laws with the mass, no-warning layoff, Mr. Raisner said. Unforeseen business circumstances can excuse a WARN Act violation in some instances, and ITT has already said aggressive government tactics left it no choice.

Correction: The WARN Act lawsuit was brought in the names of a headquarters employee, business analyst Allen Federman, and an instructor at three California campuses, Steve Ryan. An earlier version of this article incorrectly stated Mr. Ryan was an instructor at two campuses.

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http://www.wsj.com/articles/itt-employees-sue-over-sudden-mass-layoff-1473199006

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| 2081 views | | 14 replies (last September 19, 2016) | Reply
Post ID: @OP+JfKewHG

14 replies (most recent on top)

Official word from Chard Snyder. Cigna insurance via cobra not possible. Two weeks prior ITT informed call and go on Cobra. Two weeks being told by both Chard Snyder and Dept of Ed to be patient and it can take up to 45 days. Today HOWEVER told go on Obamacare. 😡😡😡😡😡 needless to say-this entire unconstitutional fiasco can happen to you all and your job. Vote Trump!! Meanwhile our sons are uninsured. Robert our cancer survivor had zero insurance. Cigna was there for him from the getgo. This is not ok.

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Post ID: @dqgb+JfKewHG

That is why I downloaded the severance policy yesterday night - I knew the crooked CEO would try to pull this sh--. But without a Chapter 7/11 filing, there is no reason to deny the employees there severance, especially since this mass layoff clearly violates the W.A.R.N act.

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Post ID: @1sou+JfKewHG

Did anyone else notice that the Severance policy is no longer on the ITT Employee Portal?

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Post ID: @1htz+JfKewHG

Class action lawsuits have a few named plaintiffs and if it is ever certified by the Court as having proper status as a plaintiffs' "class" then you will be notified that unless you take steps to "opt out" you will be a member of the class of plaintiffs. Truth be told, it turns out to be a money maker in many instances for the attorney, but for you and your 8000 closest friends, there isn't going to be a big payday. Time to move on and join the workforce. Good luck.......

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Post ID: @1nuf+JfKewHG

I too will contact this attorney

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Post ID: @1sih+JfKewHG

Umm, there is no money. The severance plan was unfunded. Look at the balance sheet. How in the world was ITT going to pay 8,000 employees a severance with a cash demand for $150 million? Stinks but we should be happy we received the last two weeks, comp pay, holiday pay, and vacation. Yep it s---s but could you imagine having your pay tied up in bankruptcy court? You wouldn't have gotten that pay for weeks.

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Post ID: @1evd+JfKewHG

I'm going to look into this lawsuit. Eight years with the company deserves severance pay.

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Post ID: @1rsa+JfKewHG

Will join this suit. No reason that the bloodsuckers at HQ are allowed to cheat us of our severance.

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Post ID: @1ogd+JfKewHG

"How could ITT predict the DOE killing them?"

A week & 1/2 ago... "When the Department asked for a $150 million and cut off aid to New students they knew that would be a death sentence"

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Post ID: @aay+JfKewHG

ITT could "predict" what the DOE was going to do when it did not comply with ACICS show-cause

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Post ID: @kvq+JfKewHG

Zero dollars divided by 8000 still equals nothing.

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Post ID: @ihx+JfKewHG

The DOE put ITT out of business. ITT was frequently required to send the DOE updates on their financials. When the Department asked for a $150 million and cut off aid to New students they knew that would be a death sentence. How could ITT predict the DOE killing them?

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Post ID: @gko+JfKewHG

Hmmm, how much should I expect

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Post ID: @bjb+JfKewHG

That escalated quickly

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Post ID: @tej+JfKewHG

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