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Arrow Found to Have Violated WARN Act

Arrow Trucking did violate federal law by failing to give employees 60 days notice prior to closing, according to a judge in the U.S. Bankruptcy Court for the Northern District of Oklahoma

by Staff
July 16, 2010
Arrow Found to Have Violated WARN Act

 

2 min to read


Arrow Trucking did violate federal law by failing to give employees 60 days notice prior to closing, according to a judge in the U.S. Bankruptcy Court for the Northern District of Oklahoma.



In a class action suit filed on behalf of the company's 1,400 former employees, Judge Terrence L. Michael said the carrier violated the Worker Adjustment and Retraining Notification Act (better known as the WARN Act), when it suddenly shut its doors Dec. 22, according to reports by Tulsa World.

Under the WARN Act, companies with more than 100 employees are typically required to give a 60-day notice of a pending mass layoff or closure. Companies that fail to give notice may be held responsible for 60 days of wages per employee, Tulsa World says.

Now, employees can file additional wage claims against the company, which filed for Chapter 7 bankruptcy liquidation in early January.

The company's bankruptcy trustee, Patrick J. Malloy, III, told the World that employees could seek wages owed but not paid prior to the closing, as well as WARN Act damages. However, this combined amount cannot be more than $10,950.

The World reports that Arrow had assets of $8.55 million and owed $98.97 million.

The carrier suddenly ceased operations on Dec. 22, laying off all 1,400 employees at that time, after its main creditor froze the company's fuel credit cards and operating capital. Many drivers were left stranded.

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