A company that provides catering and other provisions to the airline industry was sued by three former employees who say they were wrongfully laid off in March despite the company having received more than $170 million in payroll support through federal coronavirus aid.
The proposed Los Angeles Superior Court lawsuit against Gate Gourmet Inc. alleges wrongful termination, violation of the state Business and Professions Code and that the company put its interests ahead of those of the plaintiffs. The suit filed Tuesday seeks unspecified compensatory and punitive damages.
A Gate Gourmet representative did not immediately reply to a request for comment.
The plaintiffs are Brenda McCoy and Dominique Ferdinand of Los Angeles and Long Beach resident Charles Scott. Scott was a Gate Gourmet chef, Ferdinand an equipment handler and McCoy worked in food assembly, according to the complaint.
The Coronavirus Aid, Relief and Economic Security Act was enacted in March and authorized more than $2 trillion to support numerous industries affected by the pandemic, including the airline industry. Gate Gourmet received $171.4 million under the CARES program for payroll support, according to the suit.
The plaintiffs believe that by applying for CARES funding, Gate Gourmet would use the money to continue paying employee wages and benefits and refrain from any layoffs before Sept. 30, the suit states. However, the plaintiffs and other Gate Gourmet employees in the hundreds were laid off beginning March 28 and have not been rehired, the suit states.
The layoffs will cause “irreparable harm” to the plaintiffs and other proposed class members who will lose health benefits during the pandemic and at a time when unemployment is high, according to the suit.