CONCORD - Gov. John Lynch today decried the Christmas layoffs of 120 workers in Claremont by a company owned by Watermill Ventures of Massachusetts. In response, Gov. Lynch directed the Department of Justice to head to court to attempt to protect the rights of the workers and mobilized the state’s Rapid Response team to help the workers and their families.

The board of Customized Structures, Inc. in Claremont, owned by Massachusetts-based investment firm Watermill Ventures, acted today to lay off all of the company’s workers, with most losing their jobs effective Christmas Day.

“I find it unconscionable that Watermill Ventures would disregard the law and lay off these hard-working New Hampshire citizens without notice on Christmas,” Gov. Lynch said. “Watermill and the board of Customized Structures have a moral, ethical and legal obligation to follow the law and to provide either sixty days notice or severance to their employees. They have ignored their responsibilities.”

The company did not provide the 60 days notice, or severance pay, to employees required by the federal Worker Adjustment and Retraining Notification (WARN) Act. Gov. Lynch has asked the Attorney General to pursue any and all legal action in an effort to try and protect the rights of workers to receive severance pay. Customized Structures, which designs and builds modular homes and buildings, was started in 1984. Watermill Ventures purchased the company in 2003.

“Everyone doing business in the State of New Hampshire is expected to comply with the law. The law has not been adhered to in this instance and I believe strongly we must act to try and protect the workers,” Attorney General Kelly Ayotte said.

State officials learned late Tuesday of the company’s intention to close Christmas Day without offering employees severance pay, which is in violation of the WARN Act.

Gov. Lynch contacted officials at Watermill Ventures to urge them to follow the WARN Act. After conversations with the Governor, Watermill and the Customized board agreed to provide employees with two weeks severance pay.

“While that is a step in the right direction, it is still not what employees are legally entitled to,” Gov. Lynch said.

“New Hampshire state government is committed to doing all it can to help the workers and their families through this difficult time,” Gov. Lynch said. “Our Rapid Response Team will be on hand to help workers and we will expedite unemployment benefits.”

The Attorney General’s Office has filed a petition in Merrimack County Superior Court asking to dissolve Customized Structures, Inc. and have its assets frozen so that the provisions of the WARN Act may be followed. The federal WARN Act requires employers to provide notification 60 days in advance of a closing or mass layoff. If necessary, the Department of Justice will also work with the employees to pursue this matter in federal court.

A hearing regarding the state’s petition has been scheduled for Dec. 27 at 9 a.m. in Merrimack County Superior Court.

The Department of Employment Security will expedite unemployment benefits for the employees of Customized Structures. Members of the state’s Rapid Response team will be available tomorrow afternoon to meet with workers to determine what their needs may be in order to help them re-enter the workforce. Assistance can include resume writing and job counseling, to retraining. The Rapid Response team includes representatives of the state departments of Employment Security, Labor, Resources and Economic Development, Health and Human Services, the New Hampshire Community College System and NHWorks.