Trucking Software Company Convoy Failed to Provide Workers Advance Notice Before Layoff, Class Action Says

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A proposed class action claims trucking logistics startup Convoy, Inc. failed to give employees at least 60 days’ advance notice prior to a mass layoff in October 2023.

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The seven-page lawsuit says the Seattle-based company ran afoul of the federal Worker Adjustment and Retraining Notification (WARN) Act when it terminated the plaintiff and roughly 525 other employees on October 19 of this year without cause and without providing them proper advance notice.

In addition, the suit alleges that Convoy neglected to pay workers 60 days’ worth of wages, salary, commissions, bonuses and accrued holiday and vacation pay following the layoff, in violation of the WARN Act. The company also failed to make 401(k) contributions and provide workers with health insurance coverage and other employee benefits during this period, the case contends.

According to CNBC, the company, which was backed by high-profile investors such as Bill Gates and Jeff Bezos, shut down amid decreased demand for shipping and falling prices across the logistics industry. In a memo sent to employees, Convoy co-founder and CEO Dan Lewis said the shutdown was due to an “unprecedented freight market collapse” and “dramatic monetary tightening,” the report relays.

The lawsuit looks to represent any employee who worked at a Convoy facility and was terminated as part of a mass layoff or plant closing ordered by Convoy, Inc. on October 19, 2023.

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