Yellow Faces Class-Action Lawsuit Over Alleged Inadequate Notice of Layoffs

Company CultureHuman ResourcesMoney MattersHigh Tech / High TouchComplianceNuts & Bolts
Written By Jennifer Joslyn

Yellow Corp. is facing a class-action lawsuit by a laid-off employee, Armando Rivera, who alleges that the company failed to provide the required 60 days' notice before mass layoffs affecting approximately 30,000 workers. The lawsuit was filed against Yellow and its subsidiaries in Delaware District Court. The recent shutdown of operations by the company, which was previously the third-largest less-than-truckload (LTL) provider in the U.S., has led to thousands of layoffs, including about 600 employees at the Bloomington, California terminal where Rivera worked.

The lawsuit seeks to represent a legal class of plaintiffs, aiming to recover unpaid wages, benefits, and other compensation that would have been covered under the Worker Adjustment and Retraining Notification Act (WARN Act). Yellow's claim that the layoffs were due to unforeseeable business circumstances and liquidation may be subject to interpretation in court. The company is also involved in a separate lawsuit with the Teamsters over a network overhaul.

Read more from Transport Dive ▶

Featured
Knight-Swift Acquires Terminal Assets from Yellow and Venturing into LTL Sector
Knight-Swift Acquires Terminal Assets from Yellow and Venturing into LTL Sector

Companies have invested nearly $2 billion to acquire terminal assets from Yellow, comprising 128 properties and 25 leases.

Yellow Corp. Asset Acquisition Bid Rekindled
Yellow Corp. Asset Acquisition Bid Rekindled

A bid to acquire the remaining assets of bankrupt Yellow Corp. might be back on track, as a ballot sent to local union heads suggests.

Yellow Trucking Repays Contentious $700M Covid Loan Amidst Bankruptcy Fallout
Yellow Trucking Repays Contentious $700M Covid Loan Amidst Bankruptcy Fallout

Bankrupt trucking giant Yellow has announced it has fully paid back a contentious $700 million Covid loan from the U.S. Treasury Department, along with over $151 million in interest.

Yellow Corp. Continues Asset Sales, Generating Over $82 Million from Terminal Leases
Yellow Corp. Continues Asset Sales, Generating Over $82 Million from Terminal Leases

The U.S. Bankruptcy Court has given the green light to Yellow Corp.'s sale of 23 terminal leases to various buyers, totaling $82.89 million.

Estes Selected as Stalking Horse Bidder for Yellow's Terminal Assets
Estes Selected as Stalking Horse Bidder for Yellow's Terminal Assets

Estes has been officially approved as the real estate stalking horse bidder for Yellow's terminals, setting the minimum valuation for these assets in the bankruptcy proceedings.

Yellow Corp.'s Real Estate Auction Could Maximize Value Through Competitive Bidding
Yellow Corp.'s Real Estate Auction Could Maximize Value Through Competitive Bidding

It can be a very value-maximizing process," says bankruptcy attorney George Singer about the potential bidding war for Yellow Corp.'s real estate.

Teamsters Refute Yellow's Accusation of Union Involvement in Trucking Firm's Bankruptcy
Teamsters Refute Yellow's Accusation of Union Involvement in Trucking Firm's Bankruptcy

The International Brotherhood of Teamsters has rejected Yellow Corp.'s attempt to blame the union for the company's financial troubles leading to bankruptcy.

The Yellow Corp Legacy Ends with Bankruptcy and Job Losses
The Yellow Corp Legacy Ends with Bankruptcy and Job Losses

Yellow Corp., a prominent US trucking company with a history of nearly 100 years, has filed for bankruptcy, leading to the closure of its business and leaving 30,000 employees without jobs.

Yellow Faces Class-Action Lawsuit Over Alleged Inadequate Notice of Layoffs
Yellow Faces Class-Action Lawsuit Over Alleged Inadequate Notice of Layoffs

Yellow Corp. is facing a class-action lawsuit by a laid-off employee, Armando Rivera, who alleges that the company failed to provide the required 60 days' notice before mass layoffs affecting approximately 30,000 workers.

Yellow Closure Disrupts LTL Sector
Yellow Closure Disrupts LTL Sector

Less-than-truckload carrier Yellow Corp. has ceased operations after nearly 100 years in business, leading to disruptions in the broader LTL market.

Yellow Freight Closure Causes Devastating Loss of 30,000 Union Trucking Jobs
Yellow Freight Closure Causes Devastating Loss of 30,000 Union Trucking Jobs

Yellow Freight, one of the nation's largest trucking companies, recently closed down, leaving nearly 30,000 union truckers jobless.

TFI Experiencing Surge in Shipments Following Yellow's Closure
TFI Experiencing Surge in Shipments Following Yellow's Closure

TFI International's U.S. less-than-truckload operation, TForce Freight, experienced a significant increase in daily shipments, around 3,000, following the announcement of rival Yellow Corp.'s closure.

Yellow's Possible Insolvency and Teamsters' Opposition Raise Concerns for LTL Trucking Segment
Yellow's Possible Insolvency and Teamsters' Opposition Raise Concerns for LTL Trucking Segment

The possibility of a strike at UPS and the potential insolvency of Yellow, a prominent less-than-truckload (LTL) trucking company, has raised concerns among analysts about the impact on the parcel and LTL segments.

Yellow Corp's Failure to Make Pension Contributions Heightens Risk of Strike and Potential Shutdown
Yellow Corp's Failure to Make Pension Contributions Heightens Risk of Strike and Potential Shutdown

Yellow Corp, a less-than-truckload carrier, has failed to make its required pension contributions for June and plans to withhold payments for July, leading the Teamsters union to threaten a strike.

Congressional Report Highlights Problems with Yellow Corp.'s $700 Million Loan
Congressional Report Highlights Problems with Yellow Corp.'s $700 Million Loan

A Congressional report released on Tuesday revealed significant problems with the Treasury Department's $700 million loan to Yellow Corp. as part of a COVID-19 relief program in 2020.

Yellow Files Lawsuit Against Teamsters Over Contract Dispute
Yellow Files Lawsuit Against Teamsters Over Contract Dispute

Yellow Corp. has filed a lawsuit against the International Brotherhood of Teamsters, accusing the union of breaching their contract, obstructing the company's restructuring plans, and endangering its operations to the point of potential asset liquidation.

Jennifer Joslyn
Previous

The Yellow Corp Legacy Ends with Bankruptcy and Job Losses
Next

Overstock's Bed Bath & Beyond Rebrand Attracts New Suppliers