Emory Healthcare Sued Over WARN Act Violations

Emory Healthcare, a prominent academic health system in Georgia, is now the target of a class-action lawsuit filed by former employees. The suit alleges that the company violated the federal Worker Adjustment and Retraining Notification (WARN) Act when it laid off dozens of employees in its financial services and revenue cycle department in early August 2025.

Allegations of WARN Act Violations

The lawsuit claims that over 500 full-time workers were terminated without the legally required 60 days’ advance written notice. Instead, employees reportedly received severance agreements that offered payments contingent upon them signing away their rights to back pay claims. The WARN Act mandates that companies provide this notice period during mass layoffs to protect employees’ rights to benefits and back pay.

The lawsuit explicitly states, “Emory’s conduct demonstrates a willful attempt to circumvent WARN Act requirements and deprive employees of their statutory protections.” Paulette Simmons, a former employee and the lead plaintiff, recalled receiving a termination letter dated August 12th, announcing her immediate dismissal. The letter offered a lump-sum payment but required her to agree not to sue, among other conditions.

Emory Healthcare’s Defense

Emory Healthcare, however, disputes the applicability of the WARN Act, arguing that the layoffs did not meet the threshold for a “mass layoff” under the act’s definition. A spokesperson stated that the layoffs affected only 232 out of its 29,500 employees, representing about 1% of the workforce. They cited the WARN Act’s criteria, which require employment losses to represent at least 33% of the workforce at a single site, excluding part-time employees, neither of which applied in this case.

The company expressed its commitment to supporting the departing employees with resources during their career transition and conveyed gratitude for their contributions. Despite Emory’s defense, Simmons and other affected workers are urging the court to certify them as a class and declare that Emory Healthcare violated the WARN Act, seeking appropriate compensation for all affected employees.