Federal Judge Delivers Defeat to Fulfillment America

Judge Leo T. Sorokin for the federal District Court of Massachusetts denied Fulfillment America's motion for summary judgment in a class action lawsuit brought by former workers who allege that the company violated the Worker Adjustment and Retraining Notification Act (WARN Act) and the Massachusetts Payment of Wages Act (Wage Act) following mass layoffs at Fulfillment's facility in late 2022.

The decision centered on whether Fulfillment America and Job Done, LLC — a staffing company that exclusively supplied workers to Fulfillment — were joint employers. In moving for summary judgment, Fulfillment argued that it could not be liable under the WARN Act or the Wage Act because it did not directly employ workers, instead pointing the blame at intermediary companies like Job Done.

The court found that genuine disputes of material fact existed regarding the degree of control Fulfillment exercised over the workers through its intermediary companies, including hiring, firing, scheduling, and supervision. The court found that Fulfillment may retain sufficient control to be held accountable for the alleged wage violations, such training, disciplining, and scheduling the workers. Job Done, meanwhile, relied on Fulfillment for payroll data and operational direction. The court also noted that Job Done ceased operations after Fulfillment terminated their relationship, further supporting the plaintiffs' claims. ​

The decision allows the plaintiffs' claims under the WARN Act and Wage Act to proceed to trial. It marks the first substantial analysis of the WARN Act's scope to come out of the Massachusetts District Court in several years and underscores the importance of both the WARN Act and the Wage Act when it comes to protecting workers and their families. Attorneys Hillary Schwab and Oz Vazquez from Fair Work have partnered with Justice at Work to pursue the case.

More information about the case, including the notice that was sent to affected workers and a copy of the court's decision on summary judgment, can be found here.

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