Trucker Yellow’s Notice Deficits Doom Mass-Layoff Claim Defenses

Trucking company Yellow Corp.‘s notices to terminated workers lacked the details necessary to allow the bankrupt company to take advantage of two statutory defenses to claims stemming from mass layoffs, a judge said.

The Worker Adjustment and Retraining Notification, or WARN, Act’s faltering company exception and unforeseeable business circumstances defense would normally apply to the trucking giant’s collapse, but those carveouts still require proper notice to workers, and Yellow’s notices were inadequate, the US Bankruptcy Court for the District of Delaware said Thursday.

The federal WARN Act requires businesses to give workers 60 days of advance notice before certain ...