Tilson Chapter 11 leads to class action lawsuit over back pay and bankruptcy

Two former employees of Tilson Technology Management, Inc. have initiated legal action against the company for alleged violations of the Worker Adjustment and Retraining Notification (WARN) Act by failing to give adequate notice before massive layoffs as part of Tilson’s Chapter 11 bankruptcy declaration. The complainants, Jeffrey Hals and Charles Mamala Jr., claim that over 50 employees were abruptly furloughed and terminated without the mandatory 60-day notice period required under the WARN Act.

The grievances arose when Tilson informed its employees at the Nevada and Arizona facilities of their job status with minimal warning. Employees in Nevada, including Mamala, were placed on an unexpected two-week furlough on May 5, 2025, while their counterparts in Arizona, including Hals, were informed during a sudden virtual meeting over Microsoft Teams that their positions would be terminated the next day. Neither group received the necessary WARN Act notice ahead of the sweeping layoffs and facility closures.

The WARN Act stipulates that companies with over 100 full-time employees must provide a written notice 60 days in advance of any plant closings or mass layoffs impacting at least 50 employees or one-third of a facility’s workforce. Despite meeting these criteria at both locations, Tilson allegedly failed to comply with the regulatory requirements by neglecting to notify affected employees, state employment agencies in Arizona and Nevada, and local authorities.

The repercussions of these abrupt terminations have been significant for Hals and Mamala, who were caught off guard by the sudden loss of their jobs without any forewarning. Hals expressed the dire financial strain caused by the unexpected unemployment, emphasizing the bills to be paid with no preparation for the sudden income loss.

In response to these alleged violations, Hals and Mamala are seeking representation for three distinct classes affected by the company’s actions. These include a Nationwide Class comprising all employees impacted by the mass layoff or plant closure on May 5, an Arizona Subclass addressing those affected in the Chandler, Arizona facility, and a Nevada Subclass for individuals terminated at the Las Vegas facility.

The legal recourse taken by the former Tilson employees sheds light on the importance of adhering to employment regulations and protecting the rights of workers during times of organizational upheaval, emphasizing the need for employers to fulfill their obligations under the WARN Act to ensure fairness and transparency in workforce transitions.