Yellow Urges Bankruptcy Court to Cut Laid-Off Employees’ Payouts

Trucking company Yellow Corp. argued ahead of an upcoming bankruptcy court trial that it’s entitled to “substantially” reduced liabilities for damages to laid-off workers.

Yellow said in a brief filed Thursday that the US Bankruptcy Court for the District of Delaware should recognize that the company was a liquidating fiduciary when it laid off thousands of employees. A “liquidating fiduciary” finding would exempt Yellow from the obligation to issue 60-day notices under the Worker Adjustment and Retraining Notification Act.

The trucker, which filed for bankruptcy in 2023, argued that a company undergoing liquidation at the time of layoffs is not ...