Yellow Corp., one of the largest LTL carriers in the U.S., filed for bankruptcy on August 6, 2023, ending a company that had been in business for almost 100 years and impacting nearly 30,000 employees. Yellow’s financial troubles have been well-documented, including a $700 million loan from the federal government during the pandemic in 2020 that led to an investigation and multiple accounts of disputes with labor unions. The company’s debt is now estimated to be $1.3 billion. While the company tries to reach an agreement with its creditors, what happens to any outstanding workers’ compensation claims against the company?
Since Yellow had formerly been self-insured, these claims were previously settled outside the Bureau of Workers’ Compensation (BWC). Now that Yellow has ceased operations, these claims will be transferred to the BWC. If you have questions regarding an existing workers’ compensation claim with Yellow, we can help. Call NRS Injury Law to discuss your claim.
In June 2023, the International Brotherhood of Teamsters threatened a strike over Yellow’s failure to make payments to union pension and healthcare insurance funds. By July, Yellow announced it would be ceasing operations, and while the company and the unions continue to argue and point fingers over who’s at fault, workers are left holding the bag.
Class action lawsuits are starting to be filed, seeking payment of unpaid wages, salary, commissions, bonuses, accrued holiday and vacation pay, pension and 401(k) contributions, and other ERISA retirement benefits. The suit also claims the workers “were not provided 60 days’ advance written notice of their terminations” by Yellow, as required by the Worker Adjustment and Retraining Notification (WARN) Act, or 90 days’ notice, as required by the New Jersey WARN Act.
Call NRS Injury Law to discuss any of your legal needs regarding the Yellow bankruptcy. In situations like these, you need solid legal advice from Ohio’s largest workers’ compensation firm to understand your options. Contact the attorneys at NRS Injury Law for assistance navigating the Workers’ Compensation System in the state of Ohio. Call 855-GOT-HURT or fill out the online form. We don’t collect any fees unless you win.
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