Yellow Corp. Faces WARN Act Class-Action Suit

August 04, 2023

Image Source: Orlin Wagner / AP

Yellow Corp. faces a class-action suit for allegedly violating the Worker Adjustment and Retraining Notification (WARN) Act by not providing a 60-day layoff notice to its 30,000 employees. The suit, led by former employee Armando Rivera, seeks damages, including wages, benefits, and severance pay for affected employees.

Yellow is accused of abruptly terminating its workers across its subsidiaries, YRC Freight, Holland, New Penn, and Reddaway, without advance notice, amidst a rapid shift in operations and looming bankruptcy. The plaintiffs will argue against the WARN Act's exceptions for sudden company shutdowns, while Yellow is likely to justify its actions with arguments of 'unforeseeable business circumstances' and financing efforts.

 I'm WARNing You.

Yellow is facing a lawsuit for allegedly failing to provide the required 60-day advance notice to nearly 30,000 workers ahead of a mass layoff that began last week. Yellow's impending bankruptcy could challenge the conditions under which union contracts survive…— Matthew Leffler (@ArmchairAtty) August 3, 2023 

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