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Arrow Employees Take Class Action Suit to Bankruptcy Court

Arrow employees have filed a class action lawsuit against Arrow Chairwoman Carol Pielsticker and former CEO Douglas Pielsticke

by Staff
January 14, 2010
Arrow Employees Take Class Action Suit to Bankruptcy Court

 

2 min to read


Arrow employees have filed a class action lawsuit against Arrow Chairwoman Carol Pielsticker and former CEO Douglas Pielsticker

, according to a legal complaint. This suit, unlike the one that surfaced in December, was filed in the U.S. Bankruptcy Court for the Northern District of Oklahoma.

The suit was filed by Philadelphia lawyer Charles Ercole, a partner with the law firm of Klehr Harrison Harvey Bransburg LLP, the same lawyer who is handling the first suit. The same employees are also representing Arrow workers in this suit, including Jeffrey Smith, Timothy Kleck and Jay Heath.

On behalf of the company's 1,400 employees, they seek damages against Arrow for allegedly failing to pay wages, forward medical premiums, 401(k) contributions and child support payments that had been deducted from employee paychecks. The suit was filed by the same employees as the first suit

The carrier suddenly ceased operations on Dec. 21, laying off all 1,400 employees without notice, after its main creditor froze the company's fuel credit cards and operating capital. Many drivers were left stranded.

Similar to the December suit, this suit also alleges violations of the Worker Adjustment and Retraining Notification Act (better known as the WARN Act) for the company's failure to give 60 days notice before closing, and for bouncing paychecks prior to closing.

Under the Worker Adjustment and Retraining Notification Act, companies with more than 100 employees are typically required to give a 60-day notice of a pending mass layoff or closure.

Exceptions are made for a faltering company that is actively seeking capital or business that would prevent or postpone the layoffs and situations in which it is reasonable to believe that advance notice would harm the company, the act states. In all cases, however, the notice must be provided as soon as practicable.

The suit also alleges that the Pielstickers permitted employees at Arrow to work, while they knew the company wasn't able to pay out.



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