Yellow Corp. Drivers May Finally See Vacation Pay After 3-Year Wait

Key Details Former Yellow Corp. employees could receive payment for unused vacation and accrued sick leave nearly three years after the LTL carrier shut down. A federal bankruptcy court in Delaware approved a final plan in November, with asset sale proceeds going into a liquidating trust. The transition is expected to occur in June or July, with employee claims classified as priority under the plan. Remaining Challenges Settlement negotiations continue between the Teamsters and Yellow over the exact value of claims. While substantial progress has been made on amounts owed for paid-time-off and grievances, some valuation disagreements remain unresolved. Yellow's largest shareholder, hedge fund MFN Partners, appealed a pension withdrawal liability settlement, though this won't block the liquidation plan. What Happens Next The liquidating trustee will handle remaining claims and distributions to creditors, including former employees. The bankruptcy court must approve any settlements reached. As of April, Yellow's estate held a $601 million cash balance. The Teamsters are also pursuing WARN Act claims after appealing a court denial last year, arguing the company failed to provide adequate layoff notice. Driver Action Items Former employees should keep addresses updated with their local unions. Payments will be distributed via direct deposit or mail for those with closed accounts.