A state lawmaker said Walmart violated federal law when it abruptly closed a local Sam’s Club last week.
"Walmart violated the Federal Worker Adjustment and Retraining Notification (WARN) Act by abruptly closing the Sam's Club in my community," said state Rep. Vernon Jones (D-Lithonia). "Sam's Club employees, as well as the Georgia Workforce Division and local governing authorities, should have been notified at least 60 days prior to the closure.”
The Lithonia store was one of 63 Sam’s Clubs that closed around the nation.
“Walmart's inexcusable behavior has devastated businesses, families, economic stability and well-being in my district and could warrant legal action,” Jones said.
"We have fully complied with the WARN act," said Walmart spokesperson Phillip Keene. "There was nothing illegal about how we closed our club. For retailers and others, the 60-day WARN notice is tied to when employees lose their jobs and their full pay, not when you close a store to the public.
"We have acted in good faith and sent official notification of loss of employment to our team, as well as specific state and local officials, more than 60 days before employment losses happen," Keene sais. "Also, in an abundance of caution, we have decided to send official notice to Stonecrest city officials as well."
Some stores will be converted into regional distribution centers, but employees who worked there are not necessarily guaranteed jobs at the distribution center.
"We understand there is a lot of emotion around the decision to close our Lithonia club," Keene said. "It’s important to keep in mind that associates are still employed and are receiving full pay for more than 60 days after the store closed to the public, as well as job placement and other support if we’re unable to transfer them to another store or club, which is our goal.
"As a company, our focus remains on supporting our associates through this transition period," Keene said.
The store closings came the same day Sam's parent company, Walmart, announced raises and bonuses for some employees.
Walmart is boosting the minimum hourly wage for its U.S. employees to $11 and dishing out bonuses of up to $1,000, crediting President Trump's tax cut for enabling the move.
DIGGING DEEPER | Sam's Club closings: What we know
Walmart's wage increase will take effect in February. Walmart said the one-time bonuses would cost the company $400 million and will be based on length of service. Employees who have worked for at least 20 years will get the full $1,000.
Photos | Sam's Club in Lithonia closes its doors
The minimum wage increase comes about a year after Walmart hiked hourly pay to at least $10 for most workers.
