FedEx Ground has reached a settlement agreement worth $228 million to bring an end to the lawsuit brought by drivers who claimed that the company had misclassified them as independent contractors and had therefore not been giving them the benefits required by state law.
Close to 2,300 drivers are part of the class action suit. They were all employed by FedEx in California between 2000 and 2007.
While $228 million is nothing to scoff at, unfortunately for FedEx, there may be more penalties on the horizon. This suit was brought against FedEx in California, but there are other similar cases that were brought against it in other states as well. The $228 million settlement only covers the drivers involved in the California class action suit.
Drivers in Kansas have also brought a class action case against FedEx, but since the courts are ruling based on state law, FedEx is quick to point out that the results of a previous ruling don’t indicate that they will also be forced to settle in other states. Additionally, FedEx has restructured the way they contract and pay drivers so that they won’t run into this issue again.
“The contractor agreement that was reviewed by the Court of Appeals is no longer in use. Since 2011, FedEx Ground has only contracted with incorporated businesses, which treat their drivers as their employees,” said FedEx in a statement.
Next Story: Judge: Walmart Must Pay Truckers For All Time Worked
Source: gobytrucknews, overdrive, overdrive, fleetowner
Image Source: roc
Too bad it won’t magically turn Fedex drivers into real drivers. Every time the weather turns bad they are the first ones in the ditch.
99k each less 60% to lawyers = 39k to each driver.
Finally.
It’s about time that truckers are paid for all their work and not just for when the wheels are turning!
Good job Freddy instead of doing the right thing and hiring employees you pay a legal team to find a way around it. SCUMBAG