Local Trucking Company Abruptly Ends Operations, Lays Off Hundreds of Employees Across Four States
ROBINSON, Ill. (WTHI) - A trucking and logistics company headquartered in Robinson, Illinois cut hundreds of jobs across four states when it abruptly closed, and the company now faces a lawsuit from a former employee.
According to an online database, the Illinois Department of Labor received a Worker Adjustment and Retraining Notification (WARN) from Midwest Transport, Inc. on Monday. The database showed that 75 employees were being laid off at the Robinson facility and that the layoffs started weeks before the state notification was received.
Under the Illinois WARN Act, employers with 75 or more full-time employees must provide written notice of pending plant closures or mass layoffs at least 60 days in advance. Other state and federal regulations outline similar requirements.
A copy of the WARN letter Midwest Transport sent to the Illinois Department of Labor, dated September 27 explains that the company ceased operations on September 9 at all facilities, which include locations in Robinson and Greenup, Illinois. Other facilities are located in Tennessee, Florida, and Pennsylvania.
Midwest Transport says it had been seeking capital to continue operating. The company claims it couldn't give the 60-day notice because it would've jeopardized the efforts. Further, the company says a large creditor unexpectedly demanded the business cessation on September 9, preventing the company from giving employees the 60-day notice.
In total, just over 500 people were impacted, including truck drivers, support staff, maintenance workers, dispatchers, managers, and regional directors. Only a few office and administrative staffers remained to wind up the company's affairs. The letter from Midwest Transport says all of the layoffs started and ended on September 9.
A former employee in Florida filed a lawsuit in federal court, which could clear the way for a class action. The lawsuit claims Midwest Transport violated the WARN Act by not providing proper notice of mass layoffs at its Tampa, Florida location, where about 400 people lost their jobs. The plaintiff is asking for unpaid wages and benefits for 60 days.
Content Disclaimer: Due to the constantly changing nature of government regulations, it is impossible to guarantee the total and absolute accuracy of the material contained herein or presented. NorthAmerican Transportation Association (NTA) cannot and does not assume any responsibility for omissions, errors, misprinting or ambiguity contained. NTA shall not be held liable in any degree for any loss, damage or injury caused by any such omission, error, misprinting or ambiguity present. It is made available with the understanding that NTA is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert service is required, the services of such a professional should be sought.
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