Closed
Benson v. Enterprise WARN Act Settlement
The claim window closed on March 21, 2022. The court granted final approval on September 20, 2022, and pro rata checks were distributed in late 2022.
Case record
- Case
- Benson v. Enterprise Holdings, Inc. and Enterprise Leasing Company of Orlando, LLC
- Case no.
- 6:20-cv-891-RBD-LRH
- Court
- U.S. District Court for the Middle District of Florida, Orlando Division
- Defendant
- Enterprise Holdings, Inc. and Enterprise Leasing Company of Orlando, LLC
- Administrator
- American Legal Claim Services
- Settlement fund
- $175,000 class fund (plus up to $250,000 in fees paid separately by Enterprise)
The case
What this settlement was about
Elva Benson, a 34-year Enterprise employee, alleged that the rental car company violated the federal WARN Act by carrying out a COVID-19-era mass layoff of roughly 964 employees on or about April 24, 2020 without the required 60 days' advance written notice. Workers received termination notices on April 27 for employment ending April 30.
The suit noted that Enterprise had furloughed staff in mid-March 2020 and had access to Paycheck Protection Program relief, but chose permanent layoffs instead. Enterprise denied wrongdoing and settled while its appeal, contesting whether parent company Enterprise Holdings was the workers' employer under the WARN Act, was pending in the Eleventh Circuit.
The fee structure was unusual: Enterprise paid class counsel's fees of up to $250,000 on top of the $175,000 class fund, so fees did not reduce worker payouts. Final approval took five extra months because the judge appointed independent counsel to review the fee request before signing off. The release was also deliberately narrow, class members released only WARN Act and similar mass-layoff claims, not all employment claims.
The class
Who was covered
All Enterprise employees in the United States terminated without cause on or about April 24, 2020, or within 14 days of that date, or as a foreseeable consequence of the mass layoff, who were affected employees under the WARN Act, did not opt out, and did not sign a severance agreement. Approximately 964 people.
- What class members could receiveA pro rata equal share of the $175,000 fund, less administration costs and up to $10,000 in litigation expenses, split among class members who filed timely claims, over 320 claims were filed, implying roughly a few hundred dollars per claimant.
- Proof requirementClaims required supporting documentation.
- Claim deadlinePassed on Mar 21, 2022. New claims are no longer accepted.
Docket timeline
How the settlement unfolded
- April 24, 2020Mass layoff
About 964 Enterprise workers were terminated with days of notice instead of the WARN Act's 60 days.
- May 2020Class action filed
Elva Benson sued in the Middle District of Florida weeks after the layoff.
- March 21, 2022Claim deadline
Claims could be filed online, by email, or by mail; more than 320 of the ~964 class members filed.
- April 20, 2022Final approval hearing
Held via Zoom; the judge then appointed independent counsel to review the fee request.
- September 20, 2022Final approval
The settlement was approved and the case dismissed with prejudice.
- Late 2022Checks distributed
Pro rata checks went to claimants after the Eleventh Circuit appeal was dismissed in October 2022.
Questions people still ask
Frequently asked questions
Can I still file a claim in the Benson v. Enterprise settlement?
No. The deadline to file was March 21, 2022, and the settlement was finally approved on September 20, 2022. The claims process is closed.
How much did the Enterprise WARN settlement pay?
Class members who filed timely claims split the $175,000 fund equally, less administration costs and up to $10,000 in expenses. With over 320 claims filed, individual payments came to roughly a few hundred dollars.
What is the WARN Act?
The federal Worker Adjustment and Retraining Notification Act requires large employers to give 60 days' advance written notice before a mass layoff or plant closing. The lawsuit alleged Enterprise gave its workers only days of notice in April 2020.
Did class members give up other employment claims?
No. The release was deliberately limited to WARN Act and similar mass-layoff and plant-closing claims, class members kept any other employment claims they might have had.
Why did fees not reduce worker payouts?
Enterprise agreed to pay class counsel's fees of up to $250,000 separately, on top of the $175,000 class fund. Only up to $10,000 in litigation expenses came out of the fund itself.
Sources for this record
Official site bensonwarnsettlement.com has been retired. Record preserved by TapClaim.
