Yellow's Layoff Notices: Too Little, Too Late?

Recently, a federal judge in Delaware gave some guidance on the WARN Act claims from Yellow Corp. ’s former employees. They argue they weren't properly notified ahead of mass layoffs in July 2023. The judge said Yellow was correct in using some defenses, but the notices given were "insufficient. " The WARN Act usually requires 60 days' notice, but certain conditions allow for a shorter notice. Yellow was trying to secure financing and expected a deal.

However, a strike notice from the Teamsters union in July 2023 led to customers leaving, causing Yellow to shut down. The judge noted that both Yellow and the union were surprised by the outcome. Yellow's failure to provide detailed reasons for terminations voids their defenses. The judge classified the violation as technical and suggested reduced damages due to good faith. A three-day trial in January will decide more.

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