Nevada Cancer Institute faces class-action lawsuit by laid-off workers

Associated Press

The Nevada Cancer Institute announced on April 8, 2011 that it was letting go up to 160 employees because of diminished revenue. The Summerlin-based cancer treatment and research facility has treated about 15,000 patients since its 2005 opening.

Already facing financial challenges, the Nevada Cancer Institute in Las Vegas must now deal with a class-action lawsuit charging scores of workers laid off April 8 were not given two months warning as required by federal law.

The lawsuit seeking class-action status was filed by attorneys Tuesday in federal court in Las Vegas.

The lead plaintiff, Shamine Poynor, said in the lawsuit she’s seeking to recover 60 days of wages and benefits on behalf of herself and all the other employees who were laid off on April 8 "without cause" and without warning.

The lawsuit says some 150 employees were laid off, though Cancer Institute officials have said the number could reach 160.

Poynor is a clinical research coordinator who had worked at the institute in Las Vegas since April 2006, the lawsuit said.

"The defendant made the decision to terminate the employees as part of its operational restructuring plan to discontinue clinical trial and non-philanthropic funded research," the lawsuit says.

"Defendant was required by the WARN Act to give plaintiff and the other similarly-situated former employees at least 60 days advance written notice of their respective termination," the lawsuit said.

The suit charges that besides violating the warning provision of the WARN Act -- the Worker Adjustment and Retraining Notification Act -- the Cancer Institute has failed to pay the laid-off workers their 60 days worth of wages, salary, accrued holiday pay and accrued vacation – and has failed to make 401(k) contributions and provide them with health insurance coverage and other benefits under the Employee Retirement Income Security Act of 1974 (ERISA).

The suit was filed by Las Vegas attorneys Lawrence Semenza and Lawrence Semenza III and attorneys with the New York law firm Outten & Golden LLP.

Outten & Golden specializes in representing employees in workplace matters.

In announcing the layoffs April 8, Cancer Institute officials said that in order to survive financially, the Summerlin-based organization had to slash costs because of declines in government funding and donations.

A spokeswoman said the institute does not comment on litigation.

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