It seems David J. Stern's allegedly fraudulent 'foreclosure-mill' business practices may have extended to the way he laid off his employees. He "effectively put over 800 people out of work right before the holidays with no notice," Attorney Chandra Doucette, one of the lawyers representing the four former employees, told The Juice. The lawsuit alleges that Stern violated the Worker Adjustment and Retraining Notification Act (WARN), which requires 60 days notice prior to termination of employment. One plaintiff, Nikki Mack, began working for Stern 14 years ago, well before the small company grew into the massive publicly traded operation that it became, according to CBS 4. "None of the employees [currently involved in the case] had more than a couple hours notice. In several instances, they were fired by e-mail," Doucette says.
They were "told to gather their personal belongings. There were boxes by the elevator, and they were escorted out of the building," Doucette says, referring to the Nov. 5 round of layoffs, which included 435 employees. Approximately 800 employees have been laid off so far.
Severance packages were only offered to select individuals in the first two round of lay-offs on Sept. 23rd and Oct. 8, according to Doucette. After that, people were told "that financially [the company] was not able to offer any additional severance packages," Doucette says, adding that DJSP Enterprises did not file necessary paperwork regarding the layoffs to the state or county until Nov. 3, and that the paperwork is not comprehensive. "It's as if these other people don't even exist," she says."It's obviously part of one giant pattern."
Representatives from DJSP Enterprises could not be reached immediately for comment. We will update accordingly.
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