A former employee of the recently closed Red Lobster in Roxbury Township has filed a potential federal class action lawsuit against the bankrupt casual dining chain. The lawsuit, filed this week, alleges that Red Lobster violated federal and state employment laws by terminating employees without notice.
Donna Lowe, the lead plaintiff, claims she was terminated without prior notice around May 14, 2024. The lawsuit alleges that Red Lobster violated the federal Worker Adjustment and Retraining Notification Act (WARN Act) and the New Jersey WARN Act by failing to give 60 days advance written notice, as required by federal law, and 90 days notice, as required by New Jersey law.
The suit seeks certification of a nationwide class and a New Jersey subclass of Red Lobster employees who were fired around May 14, 2024. It is seeking declaratory and injunctive relief, damages, attorneys' fees, and costs.
Red Lobster, which filed for Chapter 11 bankruptcy on May 19, has been facing significant financial issues, including debt, executive turnover, and unfavorable lease terms. The company closed nearly 100 locations earlier this month, including four in New Jersey.