FedEx Ground to Pay $228 Million to California Truck Drivers
A judge has approved a settlement in a case involving FedEx Ground and some 2,300 California based drivers who worked for the company between 2000 and 2007. FedEx Ground has agreed to pay $228 million to that narrowly defined class of drivers.
This case (FedEx is/has faced many others) was originally filed in 2005 and FedEx Ground was accused of classifying drivers improperly as independent contractors and depriving them of employee benefits such as overtime pay (must be federal since California exempts intrastate drivers from overtime requirements) and rest breaks.
That would work out to nearly $100K per driver but after expenses, fees to lawyers, a nice chunk of change to the drivers who acted as named class plaintiffs in the original suit, the remainder of the class of drivers probably won’t be able to retire early – but everyone else involved is headed to Disneyland!