Jittania Smith, et al. v. Zulily, LLC, et al.

District Court, W.D. Washington·Decided July 28, 2026·No. 2:24-cv-01480·Unknown

Opinion

FOR THE WESTERN DISTRICT OF WASHINGTON AT SEATTLE

JITTANIA SMITH, et al., CASE NO. 2:24-cv-01480-KKE Plaintiffs, ORDER GRANTING PLAINTIFFS’ v. UNOPPOSED MOTION TO CERTIFY A ZULILY, LLC, et al., Defendants.

Plaintiffs filed a motion for class certification, which is not opposed by Defendants. Dkt. No. 50. The parties met and conferred to propose an order granting the class-certification motion. See Dkt. No. 52. For the following reasons, the Court grants the motions consistent with the terms jointly proposed by the parties. I. BACKGROUND This matter is a putative class action under the Worker Adjustment Retraining and Notification Act of 1988 (the “WARN Act”) and the wage payment laws for Washington, Ohio, and Nevada. Dkt. No. 33. Plaintiffs contend that, in October and December 2023, Defendant Zulily, LLC (“Defendant Zulily”) violated the WARN Act and these state wage payment laws when it ceased operations, closed all its facilities, terminated substantially all its employees, and entered a state-law process known as an assignment for the benefit of creditors or “ABC” that is analogous to bankruptcy. Id. Plaintiffs further contend that Defendant Zulily took these actions at the direction of Defendant Regent, L.P. (“Defendant Regent”), a private equity entity that Plaintiffs contend owned and controlled Defendant Zulily as one of its “portfolio companies.” Id. As a result, Plaintiffs contend Defendant Regent is jointly and severally liable for the violations of the WARN Act and state wage payment laws under the single employer doctrine. Id. Accordingly, Plaintiffs sued both Defendants for the following causes of action: (a) Count I

under the WARN Act; (b) Count II under Rev. Code Wash. § 49.52.050(2); (c) Count III under Ohio Rev. Code § 4113.15; (d) Count IV under Ohio Rev. Code § 2307.60; and (e) Count V under Nev. Rev. Stat. §§ 608.020, 608.040, 608.050. Id. Defendants contest all of Plaintiffs’ arguments. See Dkt. No. 34. Thus far, the crux of the dispute appears to consist of the following three main issues. First, while Defendants concede that shuttering Defendant Zulily in December 2023 resulted in “plant closings” or “mass layoffs” triggering the WARN Act’s requirement of sixty days of advance notice or pay-in-lieu-of-notice to affected employees, they contend that employees who were working remotely and reporting to a direct supervisor who also worked remotely were not entitled to WARN Act notice. In contrast, according to Defendants, all other employees1 were entitled to WARN Act notice, including employees who worked remotely and reported to a direct supervisor that worked in-person at one of the company’s physical locations. In other words, Defendants made a distinction for remote employees with remote supervisors, claiming they were not countable at Defendant Zulily’s physical locations for WARN Act purposes. Plaintiffs disagree and contend that all employees of Defendant Zulily laid off in

1 Except for a handful of employees who remained employed to help transition Defendant Zulily into the ABC and therefore had continued employment for the sixty days required by the WARN Act. December 2023 should have received the WARN Act’s sixty days of advance notice or pay-in- lieu-of-notice. Plaintiffs further contend that having a direct supervisor who worked remotely is not a distinction that would remove these employees from the WARN Act’s protections. As a result, Plaintiffs sued under the WARN Act on behalf of these remote employees with remote direct supervisors. On this claim, Plaintiffs Jittania Smith, Alex Douglas, and Samuel Prestwood intend to serve as class representatives.

Second, Plaintiffs contend that, in October 2023, Defendants conducted layoffs of employees reporting to Defendant Zulily’s headquarters in Seattle, Washington that were part of ultimately shuttering those headquarters in December 2023 and terminating all remaining employees. Accordingly, Plaintiffs contend that, under the WARN Act, the employees affected by the October 2023 layoffs were entitled to the WARN Act’s sixty days of advance notice or pay-in-lieu-of-notice which Defendants did not provide. As a result, Plaintiffs sued under the WARN Act on behalf of these employees laid off in October 2023. On this claim, Plaintiffs Kathryn Costello and Kirel Ahn intend to serve as class representatives. Third, Plaintiffs contend that WARN Act liability constitutes “wages” under the wage payment laws of Washington, Ohio, and Nevada. These are the states in which almost all the employees affected by the October and December 2023 layoffs lived and worked. Accordingly, Plaintiffs sued under these state laws and seek the state law penalties on the sixty days of “wages” they contend are owed under the WARN Act. On these claims, Plaintiffs Jittania Smith and Kathryn Costello intend to serve as class representatives for the Washington state law claims, Plaintiffs Alex Douglas and Samuel Prestwood intend to serve as class representatives for the Ohio state law claims, and Plaintiff Kirel Ahn intends to serve as class representative for the Nevada state law claims. On June 3, 2026, Plaintiffs moved for class certification under Federal Rule of Civil Procedure 23. Dkt. No. 50. Their motion asked the Court to certify five classes: (a) one WARN Act class under Count I for the remote employees with remote direct supervisors who were denied WARN Act notice or pay-in-lieu-of-notice in December of 2023 (the “December Federal WARN Act Class”); (b) one WARN Act class under Count I for the employees reporting to the Washington headquarters who were laid off in October 2023 and denied WARN Act notice or

pay-in-lieu-of-notice (the “October Federal WARN Act Class”); (c) one class of employees living and working in Washington at the time of their separations on the Washington state law wage payment claim in Count II (the “Washington State Class”); (d) one class of employees living and working in Ohio at the time of their separations on the Ohio state law wage payment claims in Counts III and IV (the “Ohio State Class”); and (e) one class of employees living and working in Nevada at the time of their separations on the Nevada state law wage payment claims in Count V (the “Nevada State Class”). The specific class definitions proposed by Plaintiffs are the following: The December Federal WARN Act Class All employees of Defendant Zulily, LLC for whom the following is true: (i) whose employment was separated on or about December 13, 2023; (ii) who did not receive sixty days of advance notice of their separation or pay-in-lieu-of-notice; and (iii) who did not continue employment with Defendant Zulily, LLC as part of its transition into an assignment for the benefit of creditors. The October Federal WARN Act Class All employees of Defendant Zulily, LLC for whom the following is true: (i) whose employment was separated on or about October 25, 2023; and (ii) who did not receive sixty days of advance notice of their separation or pay-in-lieu-of-notice. The Washington State Class All employees of Defendant Zulily, LLC for whom the following is true: (i) who are members of the December Federal WARN Act Class or October Federal WARN Act Class; and (ii) who were living and/or working in the State of Washington at the time of their separation.

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Jittania Smith, et al. v. Zulily, LLC, et al., (W.D. Wash. 2026).

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