Hoboken's Legal Problems Continue

Newark, NJ, December 4, 2007—Two former employees of Hoboken Wood Flooring LLC are suing the company, accusing it of breaking a federal law that requires businesses to give workers 60 days' warning of a layoff, according to The Record newspaper.

Two former employees, Jodi Riley of Wayne and Arlene Czop of Little Falls, say their termination by the company on Oct. 25 violated the Worker Adjustment and Retraining Notification Act, which requires a 60-day warning period in the event of a mass layoff.

Hoboken Wood Flooring filed for Chapter 7 bankruptcy on Nov. 7.

In a suit filed in U.S. District Court in Newark, Riley and Czop are seeking compensation for wages and benefits they say would have accrued in the 60-day warning period.

According to the Record story, Riley estimated that she is owed about $6,000 to $7,000.

Hoboken Wood Flooring said earlier that the law exempts companies that are looking for financing.

The suit, filed Nov. 27, may represent all similar employees, and reportedly more than 100 of the 700 people who lost their jobs have signed up to join the suit.

Other defendants in the suit include three Hoboken subsidiaries and private equity firm Code Hennessy & Simmons LLC, the majority owner of the company.

Wachovia Corp. filed suit for $66 million November 22.

On November 16, a Delaware judge rejectedt the Hoboken Wood Flooring bankruptcy case.