Michigan Nurses Association sues Sturgis Hospital over closure notice

The Michigan Nurses Association (MNA) has filed a federal lawsuit against the recently closed Sturgis Hospital, alleging the hospital violated the federal Worker Adjustment and Retraining Notification (WARN) Act by failing to provide the required advance notice before laying off employees. The law generally requires employers to provide 60 days’ advance notice of certain plant closings and mass layoffs to affected employees or their union representative. 

Hospital officials previously cited ongoing financial difficulties, rising operating costs, and declining reimbursements as reasons for the closure. 

In a statement shared with Watershed Voice, MNA said nurses only received 72 hours’ notice, violating the federal 60-day requirement. The statement by MNA Executive Director Janella James reads:

 “Sturgis Hospital, which was known to struggle financially for years, should have followed federal law, which we believe required it to give employees 60 days’ notice of closure; instead, it gave employees – including nurses who worked there for decades – just 72 hours, causing significant hardship for them. Some nurses still have not been paid their final paycheck and all were cut off their health insurance by the end of June without even rights to continue their insurance through COBRA. The hospital gave notice properly in 2022 even though it did not close then, and there’s no valid reason for failing to do so as it became clear this time that its longtime financial problems would indeed result in closure. We contend that MNA nurses who worked at the hospital are legally entitled to a full 60 days’ pay and benefits from the date of notice.”

The lawsuit, which was filed in the U.S. District Court for the Western District of Michigan on Friday, July 10 seeks a full 60 days of back pay, reimbursement for lost benefits, and attorney fees. 

Sturgis Hospital, which had operated for 101 years, officially closed its doors on Friday, June 19. Union officials say workers were informed of the closure on Tuesday, June 16. 

Under the WARN act, employers may qualify for limited exceptions to the 60-day notice requirement, including:

• A “faltering company” is not required to give notice of a layoff or plant closing when, before the plant closing, it is actively seeking capital or business, which if obtained would avoid or postpone the layoff or closure, and if it reasonably believes that advance notice would hurt its ability to find the capital or business it needs to continue operating;
• A business is not legally required to give a full 60-days notice if it could not reasonably foresee business circumstances that led to a layoff or closing at the time the 60-day notice would have been required, (e.g. a business circumstance that is caused by some sudden, dramatic, and unexpected action or conditions outside the employer’s control like the unexpected cancellation of a major order); or
• A business is not required to give notice if a layoff or plant closing is the direct result of a natural disaster (i.e., hurricane, flood, earthquake, tornado, storm, drought, or similar effect of nature). 

MNA argues none of the statutory exceptions apply. 

Watershed Voice reached out to Sturigs Hospital for comment on the lawsuit but did not receive a response before publication.

Maxwell Knauer is a staff writer for Watershed Voice.