Fisker laid off 160 of the 210 employees working at the Anaheim, California plant, without giving them severance pay, only compensation for unused vacation days. Outten & Golden sued Fisker for failing to notify its workers 60 days in advance, which means the company violated the federal U.S. Worker Adjustment and Retraining Notification Act and a similar state WARN Act.
Fisker will keep only 53 senior executives and managers to help the automaker sell off its assets. The Energy Department offered Fisker a $193 million loan, to help the company build the Karma sedan which sells for almost $100,000. The automaker has to repay the loan by the end of this month.
It seems that Fisker had some hard times so far with battery maker A123 going bankrupt, Chinese companies giving up their bids for the company, which forced Fisker hire a bankruptcy lawyer, with the company’s founder and Executive Chairman Henrik Fisker leaving the automaker, with no vehicle in production for 7 months and now with this lawsuit.