An Illinois company recently announced it was closing and laying off more than 250 employees.
Alton Steel reported the layoffs in a Jan. 27 notice to the Illinois Department of Commerce and Economic Opportunity. The company announced that it will lay off 253 employees at the Alton plant starting on January 31.
The Illinois Department of Labor has launched an investigation into sudden layoffs at Alton Steel Co.
The Illinois WARN Act requires employers with 75 or more full-time employees to provide 60 days’ notice to workers and government officials in the event of mass layoffs or plant closings. The Illinois Department of Labor issued a subpoena to Alton Steel Co. as part of a broader effort to determine whether the company violated the WARN Act.
“By law, there is no timetable for completion of an investigation under WARN, and each situation is different,” U.S. Department of Labor spokesman Paul Cicchini told the Star in an email. “This investigation remains open.”
Employers who fail to provide 60 days’ notice may be subject to civil penalties of up to $500 per day of violation and are required to pay each affected employee back pay and benefits for the period of the violation, which may be up to 60 days.
Ann Lesemann, director of human resources for Alton Steel, said the company was unable to provide advance notice. Raisman said in a letter to the Illinois Department of Commerce and Economic Opportunity that the company met exceptions to the WARN Act, including “unforeseen business circumstances” and “faltering companies.”
“Alton Steel’s material suppliers owned substantial properties, including raw materials, which the suppliers claimed as collateral, leaving Alton Steel without the materials it needed to continue its operations and without access to other sources due to its financial condition,” Lesseman wrote.
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Leatherman added that the company had been “aggressively seeking funding” to stay afloat, and the warning notice would make that impossible.
The Peoria Daily Star reached out to Alton Steel for comment by phone and email but did not receive a response.
This article originally appeared in The Star: Illinois companies under investigation for closures, mass layoffs