Numerous class action lawsuits stemming from the COVID-19 pandemic are expected to be filed, according to panelists in the program, “Employment Law and the Federal Court,” on Thursday at the NJSBA 2020 Virtual Annual Meeting.
Attorney Jemi Lucey moderated a panel composed of attorneys Christopher Adams, Sharon King, Michael Madden and Maja Obradovic.
A number of employment class action cases have been filed under the federal Worker Adjustment and Retraining Notification Act over the last few months, which requires employers to give 60-day notice before significant layoffs.
Lucey said it will be interesting to see if employers will seek exemptions from the federal and some state WARN acts that allow for unforeseeable business circumstances. New Jersey, New York and California have their own WARN acts with provisions that include COVID-19 as an unforeseeable business circumstance, she said.
“As of yet, the federal act has not been interpreted in that way consistently,” she said.
There are also expected to be more filings under the Families First Coronavirus Response Act, which includes paid sick and family leave related to COVID-19. The first case was filed in Pennsylvania against Kroger Co.
Class action cases are also expected to be brought against many of the large banks, which are being questioned for how they gave out loans under the Coronavirus Aid, Relief, and Economic SecurityAct and the Payment Protection Program, alleging they gave out preferential treatment to high net worth customers.
Obradovic said federal courts are seeing lawsuits filed by students seeking partial reimbursement of tuition after their colleges shut down campus and courses went online. “They really raise an existential question: How do you place a value of being on campus and being able to interact with your peers and professors in person?”
She said there will likely be more cases filed from furloughed employees.
Sharon King said three class action lawsuit trends have emerged: whistleblower, unsafe work conditions, and age discrimination.
“Employers may be OK if they comply, or largely comply, with OSHA requirements, as well as the CDC recommendations.”