Butler & Hosch Closing Was Illegal Alleges Lawsuit By Former Employees

Butler & Hosch, which closed suddenly law month, is now being sued by former employees Stephen Regal and Gianna Hillis in federal court seeking back pay and benefits. 

The lawsuit alleges that the firm failed to provide 60 days’ written notice as required by the federal Worker Adjustment and Retraining Notification Act.   

Before the sudden announcement, the firm controlled about 90 percent of the nation’s foreclosure litigation, according to Hosch. It had a national footprint spanning 27 states and the District of Columbia, with 700 attorneys, paralegals and back-office staff working on up to 60,000 foreclosure files.

The employees bringing suit say the letter implied the firm’s administration “knew that terminations were anticipated but failed to provide employees, nor state and local authority, with advance notice as required” under the law. They demanded a jury trial.

Plaintiffs attorney Seth Lehrman said the employees worked without pay for three weeks. The complaint suggested the layoffs were the second round for the firm, following a cut of dozens of employees in December.

Besides back pay, the employees are seeking expenses, commissions, bonuses, accrued vacation and holiday pay, pension and 401(k) contributions as well as medical benefits for 60 days.  The proposed class would include all former full-time Butler & Hosch employees, including temporary workers.

The employees are represented by Farmer Jaffe Weissing Edwards Fistos & Lehrman and Bulter and Hosch by GrayRobinson.

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