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Illinois labor department fights to recover $3.8M in unpaid wages for displaced workers
The Illinois Department of Labor (IDOL) is working to recover more than $3.8 million in unpaid wages and benefits for over 350 employees left jobless after their employers abruptly shut down earlier this year.
CHICAGO - The Illinois Department of Labor (IDOL) is working to recover more than $3.8 million in unpaid wages and benefits for over 350 employees left jobless after their employers abruptly shut down earlier this year.
On Oct. 30, IDOL, through the Illinois Attorney General's Office, filed federal bankruptcy claims against Outfox Hospitality, LLC; Dom’s Kitchen and Market, LLC; and Foxtrot Market.
The claims aim to recover wages and benefits owed to workers after the companies failed to provide the 60-day notice required under the Illinois Worker Adjustment and Retraining Notification (WARN) Act.
The closures began in April when Dom’s, Outfox and Foxtrot notified employees of immediate shutdowns.
IDOL promptly informed the companies of their obligation to provide sufficient notice under WARN and requested payroll records. However, the businesses delayed compliance and ultimately filed for federal bankruptcy protection, halting IDOL’s initial efforts to secure compensation for affected workers.
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Foxtrot reopen select locations in Chicago
Foxtrot announced plans to reopen a few of its stores in Chicago after they all abruptly closed in April. Eater Chicago said the Lincoln Park and Lake View locations are not on the shortlist for a comeback.
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Although Foxtrot reopened some stores in September, IDOL continued its pursuit by filing priority wage claims in the bankruptcy proceedings.
"The Illinois Department of Labor works every day to protect and recover unpaid wages owed to workers across the State," said IDOL Director Jane Flanagan. "In cases such as these, the Department is committed to pursuing all legal paths against employers who fail to abide by their obligations under WARN."
Under the Illinois WARN Act, employers with 75 or more full-time employees must provide 60 days' notice before closures or mass layoffs.
Failure to comply can result in liability for back pay and benefits for affected employees for up to 60 days, as well as civil penalties of up to $500 per day for non-compliance.
Illinois workers who believe their employer violated WARN requirements can file a complaint online with IDOL.
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Dom's Kitchen, Foxtrot parent company Outfox Hospitality files for bankruptcy
Outfox Hospitality made the Chapter 7 filing in Delaware and comes six months after the two companies first merged.