A Chicago-based law firm is looking into whether S&S Activewear (asi/84358) violated federal labor laws in its recent decision to lay off workers in Lewisburg, PA, and Bolingbrook, IL – claims that the Counselor Top 40 supplier denies.

Strauss Borrelli PLLC, the class-action law firm leading the investigation, says that S&S Activewear may have violated the Worker Adjustment and Retraining Notification Act. Passed by Congress in 1988, the federal law requires employers with 100 or more employees to notify workers, their representatives and certain government organizations about the layoffs or plant closures 60 days in advance of the event.

In December, S&S Activewear notified the Illinois Department of Commerce and Economic Opportunity of its decision to lay off 195 employees at its Bolingbrook, IL, facility. It also informed the Pennsylvania Department of Labor and Industry about the 128 employee layoffs at its Lewisburg, PA, facility. The active investigation is questioning whether S&S Activewear provided at least 60 days’ notice to these employees.

S&S Activewear says the claim is without merit and it didn't violate the WARN act.

“We have communicated these changes well in advance and throughout the past year, providing consistent updates as plans and timelines have evolved,” a spokesperson for the company told ASI Media. “Employees in the affected facilities have received significant notice, along with access to comprehensive resources and support options to help them navigate the transition.”

According to a release from Strauss Borrelli PLLC, employees must receive a WARN notice if they are laid off or if their hours are cut by 50% or more in any six-month period due to a plant closing or mass layoff. A temporary layoff may violate the WARN Act if it ends up lasting longer than six months.

If the investigation finds that S&S violated the WARN Act, employees may be entitled to 60 days of severance pay and benefits.

The investigation comes approximately a year after S&S Activewear completed its acquisition of former Counselor Top 40 supplier alphabroder. The deal was deemed among the largest acquisitions in the history of the North American promotional products industry, combining two industry behemoths.

Both locations undergoing layoffs are former alphabroder facilities, an S&S spokesperson has confirmed.

S&S Activewear announced layoffs across departments and locations at the beginning of 2025 and has submitted at least five WARN notices this year, including 117 employees laid off in its Fresno, CA, facility and 200 at its Fairview, PA, location.

The S&S spokesperson noted that the company plans to consolidate four distribution centers over the next year and will continue to operate 14 strategically located distribution centers across North America.

S&S Activewear is the second-largest supplier in the industry, with estimated 2024 North American promotional products revenue of $3.6 billion.