Lawsuit: Aleph Objects employee alleges violation of WARN Act

LOVELAND — An employee with Loveland-based Aleph Objects Inc., whose job was recently cut as part of a mass layoff, alleges that the company violated laws that require a 60-day notification prior to termination.

Aleph, a 3D printer manufacturer, announced Friday that it had eliminated 80 percent of its 113-person workforce — about 90 positions — as a result of an ongoing cash-flow crunch.

Zachary Hergenreder, an Aleph employee laid off during Friday’s purge, alleges that the firm failed to meet certain requirements established by the Worker Adjustment and Retraining Notification Act, according to a class-action suit filed Monday afternoon in U.S. District Court in Denver. 

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WARN Act provisions are triggered when a company with more than 100 employees lays off more than half their workforce at a single site. Aleph did not file a WARN notice with the Colorado Department of Labor and Employment. 

“Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs, and if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market,” according to U.S. Labor Department documents.

Aleph founder Jeff Moe told BizWest Monday afternoon that he was unaware of the suit.

He declined to comment further on the case, but emphasized that the company is “having active discussions with potential buyers and investors.”

While the company searches for a savior, it will continue to manufacture and sell the LulzBot Mini 2, Workhorse and Pro series of printers, he said.

Moe said Aleph doesn’t have a specific deadline for finding a buyer or investor, but the company’s timeline is “measured in days and weeks rather than months and years.”

Hergenreder’s suit demands payment of “unpaid wages, salary, commissions, bonuses, accrued holiday pay, accrued vacation pay pension and 401(k) contributions … that would have been covered and paid under the then applicable employee benefit plans had that coverage continued for … 60 working days following the member employee’s termination, all determined in accordance with the WARN Act,” according to the complaint.

Hergenreder is represented by attorneys with Alabama-based The Gardner Law Firm. Mary Olsen, listed on court documents as Hergenreder’s lawyer, could not be reached for comment Tuesday.