Former Zulily employees in Storey County are among those joining a class-action lawsuit against the online retailer after it shut down its operations in December before being sold in March.
The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleges that Regent, Zulily’s former parent company, violated the federal Worker Adjustment and Retraining Notification (WARN) Act by failing to provide the required 60-day notice to remote employees, including those in Nevada.
The suit claims that Zulily laid off 839 employees, including hundreds in Nevada and Ohio, without complying with the WARN Act. Although Zulily closed its headquarters in Seattle, remote workers assigned to physical locations like those in Storey County were not given proper notice or pay, according to the lawsuit.
Plaintiffs argue that Regent consulted with its legal team and exploited a loophole to avoid compensating these remote employees. In Storey County, where Zulily once employed a large workforce, employees who were part of the mass layoff are now seeking damages, attorney fees, and other costs through the lawsuit.
The WARN Act requires companies with 100 or more employees to provide a 60-day notice before a facility closure or large-scale layoff, giving employees time to find new employment. The lawsuit asserts that Zulily’s failure to comply with these provisions has left affected employees in Nevada and beyond without the protections they were entitled to under federal law.
Zulily, acquired by Los Angeles-based Regent in 2023, underwent multiple layoffs, resulting in the closure of the Storey County operations, and remains embroiled in legal battles, with former employees and vendors filing complaints.
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