A subsidiary of a Canadian mining company has agreed to settle a lawsuit filed by employees of a northeastern Nevada mine after they were laid off in August 2008, both sides said.

Yukon-Nevada Gold Corp. subsidiary Queenstake Resources USA agreed to settle the complaint filed by five former Jerritt Canyon Mine employees, the Elko Daily Free Press reported Friday.

The ex-employees, in their suit filed in U.S. District Court in Reno in July 2009, claimed they were denied notice and severance pay, as well as medical bill payments required under federal law.

The suit sought class-action status for roughly 400 employees who lost jobs when the mine 50 miles north of Elko was shut down due to financial troubles. Yukon-Nevada, based in Vancouver, British Columbia, has since reopened Jerritt Canyon.

Attorney Travis Gerber, who represents the plaintiffs, said he will file a motion with the court to approve the settlement and certify the class action. A claims administrator then will contact all former employees and determine how much each is owed.