Former Yellow Truck Drivers Could Receive Payments Under New Bankruptcy Settlement

Former Yellow Corporation employees may be closer to receiving money owed to them following a preliminary settlement announced by the Teamsters on October 7.

According to a union memorandum dated October 6, Yellow's liquidation trustee agreed in principle to recognize approximately $15 million in federal WARN Act claims, $2.19 million in New Jersey WARN Act claims, $1.2 million in unresolved employee grievances, and $1.75 million for unused personal holidays covered by certain union contracts.

The Teamsters had previously negotiated claims for unused vacation and paid time off totaling $65.8 million, along with $5.7 million in sick leave claims. The union expects most eligible members' approved claims to be paid in full, subject to a combined limit of $22,650 per person. That figure is a cap, not a guaranteed payment.

The settlement still requires a signed agreement and approval from the federal bankruptcy court in Delaware. If approved without appeals, payments within the applicable limits could begin within months. Former Yellow employees should keep their contact information updated with their local Teamsters union.