Promotions Unlimited is the center of a state investigation into whether it violated a law that requires companies to notify the state that it intends to close and that it didn’t pay their workers for the last week on the job, according to a story by the Journal Times.
Mount Pleasant-based Roosevelt Capital LLC owns Promotions Unlimited, which supplies retail stores with dollar store items and promotional materials. The president of the company, Lorraine Greenberg, notified its employees via a letter sent Feb. 1 that the closure is permanent and its paycheck vendor is reversing the employees’ direct deposits. A number of employees paychecks, which had been deposited on Jan. 27, saw their money taken out of their bank accounts on Feb. 2.
According to the Journal Times: “The state is investigating resulting wage complaints filed with the Department of Workforce Development.”
Officials with the Wisconsin Department of Workforce Development also told the Journal Times that the department has received 14 complaints indicating that Roosevelt Capital LLC violated the Warn Act, which requires employers to give a 60 day notice in advance of covered plant closings and covered layoffs to employees and the state. The state was told about the closing on Jan. 31.
“This notice must be provided to either affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate unit of local government,” according to the Department of Labor.
Former employees told the Racine County Eye that they are also having issues with determining whether the company made payments into their 401K accounts and health insurance premiums.
Vendors and suppliers are also taking issue with the short notice, according to the Journal Times.