In the aftermath of The Messenger’s abrupt shutdown, the digital news site is facing legal action from a former employee, Pilar Belendez-Desha, who claims the company failed to adhere to laws protecting workers affected by layoffs.
Belendez-Desha, a former producer for the site, filed a lawsuit on Feb. 1 in a US District Court in New York, representing herself and approximately 300 laid-off employees. The complaint alleges violations of both federal and state Worker Adjustment and Retraining Notification (WARN) laws, which mandate employers to provide advance notice of layoffs.
The Messenger launched with $50 million in funding less than a year ago, aimed to be an unbiased alternative to national news media. However, financial troubles surfaced quickly, with only $3 million in revenue generated by Jan. 4 and a mere $1.8 million in cash on hand. On Jan. 31, founder Jimmy Finkelstein informed staff via email of the immediate shutdown, erasing all site content without offering severance to the terminated employees.
The lawsuit claims that none of The Messenger’s employees received written notice of their terminations before Jan. 31, 2024. Belendez-Desha and her colleagues are seeking to recover up to 60 days’ wages and benefits from The Messenger.
The former employees argue that The Messenger violated the Federal WARN Act, requiring organizations with 100 or more employees to give at least 60 days’ advance notice for mass layoffs affecting 50 workers or 33% of the workforce. Additionally, they allege a violation of New York’s WARN Act, demanding 90 days’ advance written notice for layoffs impacting 25 or more full-time employees.
It’s worth noting that exceptions to the federal WARN Act exist, allowing companies to bypass obligations under certain circumstances, such as offering 60 days of severance pay or citing unforeseeable business circumstances. With an increase in mass layoffs, compliance with WARN regulations faces heightened scrutiny, as observed by a rise in complaints during 2022 and 2023, particularly within the media industry, where over 500 journalists lost their jobs in January despite overall job growth.
