Spirit Airlines is facing a proposed class-action lawsuit following the low-budget carrier's announcement earlier this month that it would cease operations permanently.

The lawsuit was filed May 12 in the Southern District of New York on behalf of former employees who claim the company violated federal labor laws when it abruptly shut down operations on May 2 and reduced the work force by roughly 17,000 employees without advance notice.

According to the complaint, Spirit Airlines ceased operations and informed employees the same day in an email from company leadership.

The complaint alleges the company told employees in an email at the time that it was unable to give more advance notice of the layoffs, "because the Company was actively seeking capital to avoid these layoffs and closures and notice would have precluded the Company from obtaining the capital needed," according to a copy of the message included in this week's filing.

The complaint claims that workers immediately lost their jobs, benefits, and access to company systems at that time, and were owed accrued vacation and sick pay.

The complaint alleges that employees were shocked when the airline announced it was immediately ending operations and winding down the business.

Workers were allegedly told they would be paid through May 2, 2026, according to the complaint. However, the suit alleges many workers have still not received final paychecks or compensation for unused vacation and sick time.

The former employees are seeking damages equal to 60 days of wages and benefits under the Worker Adjustment and Retraining Notification Act, or WARN Act, which the U.S. Department of Labor describes as "help[ing to] ensure advance notice in cases of qualified plant closings and mass layoffs," according to the complaint.

The plaintiffs are also asking the court to certify the case as a class action covering all affected Spirit workers.

Spirit Airlines announced on May 2 that it had begun "an orderly wind-down of our operations, effective immediately," citing a "material increase in oil prices and other pressures on the business" that had "significantly impacted Spirit’s financial outlook."

The announcement came after the airline's negotiations with the federal government to secure a $500 million rescue deal stalled.

"To our Guests: all flights have been cancelled, and customer service is no longer available," a message on the Spirit website reads. "We are proud of the impact of our ultra-low-cost model on the industry over the last 33 years and had hoped to serve our Guests for many years to come."

Spirit Airlines declined to comment on the complaint when reached by ABC News.