Illinois Department of Labor Seeks Back Wages for Foxtrot's Employees
CHICAGO — Even as Foxtrot Café & Market embarks on its second life, the convenience store retailer still faces potential legal ramifications from its abrupt shutdown this past April.
The Illinois department of Labor (IDOL) announced it is continuing to seek recovery of more than $3.8 million in back wages and benefits for 350-plus workers.
Through the Office of the Attorney General, IDOL filed three separate federal bankruptcy claims against Dom's Kitchen and Market LLC, Foxtrot Market and Outfox Hospitality LLC, which served as parent entity to Dom's and Foxtrot, on Oct. 30. According to the claims, former employees are owed wages and benefits because the businesses failed to provide a 60-day notice required by the Illinois Worker Adjustment and Retraining Notification (WARN) Act.
[Read more: CSN EXCLUSIVE: The Demise & Resurrection of Foxtrot]
The Illinois WARN Act requires employers with 75 or more full-time employees to give workers and state and local government officials 60 days advance notice of a closure or mass layoff. An employer that fails to provide the notice required by law is liable to each affected employee for back pay and benefits for the period of the violation, up to a maximum of 60 days. They may also be subject to a civil penalty of up to $500 for each day of the notice violation.
"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."
Upon the sudden closing of all Foxtrot and Dom's locations, IDOL notified all three businesses of their obligations to provide sufficient notice of closure under WARN and sought payroll records and other documents, according to the department. However, it added, while the businesses initially expressed a need for more time to provide the requested documents, they later notified IDOL that they were filing for federal bankruptcy protection and would not comply with the request for financial records, as the bankruptcy proceeding halted IDOL's collection efforts on behalf of the affected employees.
IDOL stated that it continued its attempts to recover owed wages and benefits following Foxtrot's September reopening by pursuing priority wage claims in the federal bankruptcy proceedings.
"I will continue to partner with the Illinois Department of Labor to protect workers and ensure their rights on the job," said Illinois Attorney General Kwame Raoul.
Chicago-based Foxtrot Café & Market is a modern coffee shop and upscale market offering a curated selection of coffee, groceries and café products from local makers and beyond.