Alliance Bancorp terminated employees sue for 60 days pay and benefits

By Caroline Salls

Pittsburgh, Dec. 13 - Alliance Bancorp's former employees have filed a class action lawsuit seeking 60 days of pay and related benefits, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the filing, Alliance allegedly violated the Worker Adjustment and Retraining Notification Act because it did not give the employees at least 60 days' advance notice of their termination.

As a result, the former employees said they are entitled to 60 days' pay and related benefits, including bonuses, accrued holiday pay, accrued vacation, health insurance coverage and 401(k) contributions.

The plaintiffs said they were part of a July 13 mass layoff, and they did not receive the 60 days' written notice that is required under the WARN Act for employees terminated in a mass layoff or plant closure.

The lawsuit class includes about 300 former Alliance employees.

Alliance Bancorp, a Brisbane, Calif., mortgage lender, filed for bankruptcy on July 13. Its Chapter 7 case number is 07-10942.

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