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Yellow Corp. Faces WARN Act Class-Action Suit
Class-action suit targets Yellow Corp. for violating WARN Act through abrupt layoffs. Seeks damages for employees across all subsidiaries.
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.