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FedEx Ground Package System Inc. has agreed to pay $226.5 million in order to settle a class action lawsuit that claims the shipping company misclassified drivers as independent contractors rather than employees which deprived them of certain benefits.
Seventeen pick-up and delivery drivers filed the FedEx class action lawsuit over allegations that FedEx Ground and FedEx Home Delivery failed to provide them with employee rights under California law including: unreimbursed employment expenses, illegal wage deductions, failure to provide meal and rest breaks, and unpaid overtime pay.
In addition, the FedEx Ground class action lawsuit claims that according to company policy, the defendant “routinely threatens contract termination of any driver requesting time off for an illness or injury to himself or covered family member.“
The 17 plaintiffs allege that FedEx requires pick-up and delivery drivers who seek a leave that would be covered by the Family Medical Leave Act to hire pre-approved temporary replacement drivers at the driver’s own expense.
At the time that the FedEx class action settlement was reached, the case was moving towards trial to determine if FedEx Ground violated the California labor laws.
FedEx Ground continues to claim that the independent contractor classification is appropriate and denies that it has broken any laws but agreed to settle the wage and hour class action lawsuit in order to avoid the cost of further litigation.
Who’s Eligible
The FedEx Ground class action lawsuit settlement is open to Class Members in three different classes:
General Class – Includes all persons who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement in order to drive a vehicle on a full-time basis from Nov. 17, 2000 through Oct. 15, 2007 and were dispatched out of a terminal in the state of California between Nov. 17, 2000 and Aug. 31, 2015.
Overtime Subclass – Includes Class Members who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement in order to drive a vehicle on a full-time basis from Nov. 17, 2000 through Oct. 15, 2007 and were dispatched out of a terminal in the state of California between Nov. 17, 2000 and Aug. 31, 2015 to operated a vehicle with gross vehicle weight rating of less than 10,001 pounds.
Meal and Rest Period Settlement Subclass – Includes all persons who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement from Nov. 17, 2000 through Oct. 15, 2007 in order to drive a vehicle on a full-time basis since Aug. 1, 2011 to provide package pick-up and delivery services pursuant to the Operating Agreement; and were dispatched out of a terminal in the state of California between Aug. 1, 2011 and Aug. 31, 2015.
Potential Award
Varies.
The FedEx Ground Settlement of $226.5 million will be divided among Class Members in the following Subclasses:
General Class – Class Members will receive a “Weekly Base Settlement Payment” for each week in which they worked full-time (defined as 35 hours or more) adjusted for each year during the claim period to reflect accrued statutory interest at rate of 10% simple. The estimated amount that will be awarded to Class Members who drove for FXG is $240 and FHD is $190.
An absolute minimum payment of $250 will be allocated to persons who received the class notice, but who did not fit the FedEx General Class definition during any portion of the class period.
Overtime Subclass – Class Members will receive additional settlement payments in pro rata settlement shares from an overtime settlement reserve fund of $16 million. Payments are calculated based the daily and weekly overtime hours for members of the Overtime Subclass as derived from records produced by FXG.
Meal and Rest Period Settlement Subclass – Members of the General Class who continued to drive after Aug. 1, 2011, will receive additional settlement payments in pro rata settlement shares from a meal and rest period settlement reserve fund of $5.6 million, calculated based on days worked between Aug. 1, 2011 and Aug. 31, 2015, as derived from records produced by FXG.
Proof of Purchase
In order to receive payment from the FedEx class action settlement, Class Members must meet the eligibility criteria and submit a valid Claim Form before the deadline of Jan. 15, 2016.
Claim Form
Claim Form Deadline
01/15/2016
Case Name
Dean Alexander, et al. v. FedEx Ground Package System Inc., Case No. 3:05-CV-0038 EMC, in the U.S. District Court for the Northern District of California
Final Hearing
03/24/2016
Settlement Website
www.Alexander-V-FedExGround-Settlement.com
Claims Administrator
Alexander v FedEx Settlement Administrator
c/o Rust Consulting Inc. – 4920
PO Box 2396
Faribault, MN 55021-9096
800-711-1958
Class Counsel
Beth A. Ross
Aaron Kaufmann
David Pogrel
Elizabeth Gropman
LEONARD CARDER, LLP
Defense Counsel
Carolyn Kubota
Scott M. Voelz
O’MELVENY & MYERS LLP
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26 thoughts onFedEx Ground Wage & Hour Class Action Settlement
I was treated the same way as a contractor for FXG in California. My contract was signed and effective March of 2009 through December 2014. Based on these dates It seems I do not qualify as a class member. What is the likelihood of a suit involving those of us who signed contracts after the specified period? I am quite interested and have much documentation to offer. I have inquired with several attorneys who have been reluctant to take the case as as individual plaintiff but said I would likely have a good case as part of a class based on the economics of it all. I would love to persue this with anyone else interested. Also, I DID NOT sign the indemnity document that FXG produced offering $10,000 to hold them harmless in any future claims. I wonder how many others refused as well.
Is there any mention of the Idaho drivers in the 20 states? Definately, paid the price.
I am also a contractor in the state of Virginia and would like to know if there is a class action suit already in place or do I have to get an attorney on my own!
Let me tell you about this Irogant company called Fedex Ground, they have been doing the same thing to Linehaul contractors as well. We as Linehaul contractor will be next in line for a lawsuit and I’ll be the first one standing in line. They have stolen money from me basically then when I call them on it I’m being threatened with termination forcing me to sell. Oh ya… Then they try to blackmail me! And all of this, I have all the proof. So look out Fedex because the Linehaul contractors are coming for you next. Your internal corruption will not win over the everyday contractor(s) that have gave them the best only to be crapped on . Where is my money from the Flying J pilot corruption of with holding rebates provided by the oil companies? Oh that’s right Fred Smaith is on the board and I’m sure he either kept our portion or never took it… Either way your F******g company is corrupt and even worst you don’t give 2 shits about anybody but your greedy self… Pigs!!!!
Is there an case in Virginia…Please contact me back….We work Tuesday thur Saturday…We dnt get paid for the time we clock in….
Yes. My understanding is that a tentative settlement has been reached, pending approval by the judge. Not certain of the time frame covered or if it will cover drivers owning multiple routes.
This is still going on in California! I worked for FedEx in Novemer & December of 2015 and still had these violations occur to me. I worked 14-15 hour days without breaks or lunches. 14-15 hours of delivery driving, completely illegal what they have these men and women doing!
I own routes in Maryland. Has anyone filed in Maryland.
Yes. A settlement has been agreed to. Notices are to be mailed out on/before 9/12/16.
The period covered is from May 2003-October 15, 2007. If you signed the OA and drove during that period you should be included. Ill re read the settlement and see if I can figure out how multiple routes are handled. My recollection is that you’d only be paid for the route you drove on. I could be wrong.
I was a contractor from like 2008 to 2011. Is anything happening for contractors during that time
You may want to contact class counsel with any questions about the case or other possible cases. Class counsel is listed in the article, and can be Googled for contact information. We wish you the best of luck in your pursuit of justice!
If you worked in California or Oregon there were important claims deadline you needed to meet.They extended the deadlines like 3 times early in the year.For more info here’s the link:
alexander-v-fedexground-settlement.com That has all the current info..Everyone involved has received. For further info you have to call the Attorneys listed on website.
Hello, I see that this action class is out of the state of CA, do you also know if there is one for the state of Wisconsin? Please help! Thank you!
Hello, I see this class action is out of the state of CA, do you know if it will one day include Texas?