Shapiro Bros. Shoe Co., Inc. v. Lewiston-Auburn Shoeworkers Protective Association

320 A.2d 247 (1974)

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Nature of the Case

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Facts

P announced to its employees that it 'is voluntarily going out of business and shall conclude all of its activities in the manufacture of shoes on February 22, 1973.' P ceased operations on February 5, 1973, thirteen days after the posting of the above notice. On March 2, 1973, D notified P's attorney by mail that it felt the shoe company was obligated to pay severance pay to employees who had worked at the plant for one year or longer. P instituted the present action for a declaratory judgment and injunctive relief against D. Later, the three individual Defendants, all of whom had worked for P for over a year until being laid off at the plant's closing, were added by agreement and order of the court. P seeks a declaration that paragraphs two and three of 26 M.R.S.A. § 625 are unconstitutional. While this action has been pending, the Legislature repealed paragraph two of 26 M.R.S.A. § 625 and substituted a new paragraph in its place. P.L. 1973, ch. 545. The statutory language under attack requires an employer of 100 or more persons to give one month's notice to its employees prior to voluntarily going out of business. Failure to give this notice shall obligate the employer to pay severance pay (up to a maximum of one month's pay) to employees who have worked a year or more for the employer. P contends the statute violates the due process and equal protection provisions of the Maine and federal constitutions. P alleges that 1) certain language in the statute is void for vagueness; 2) the statute requires a taking of property without compensation; 3) the statute discriminates against employers who voluntarily cease business; 4) the statute discriminates against employers who employ 100 or more people.