FedEx Agrees to $2.1M Wage and Hour Class Action Settlement

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FedEx Corp. has agreed to an unpaid overtime class action settlement totaling $2.1 million to settle allegations filed by current and former package handlers claiming FedEx failed to provide them and other California FedEx employees with meal break and rest periods.

On September 8, lead plaintiff Aaron Rangel and his legal counsel filed for preliminary approval of the agreed upon class action settlement between the Class and FedEx Ground Package System Inc.

Rangel and a group of other package handlers filed the FedEx wage and hour class action lawsuit against this company branch in California Superior Court last year.

Rangel alleges that he and other Class Members were denied meal breaks and a second rest period while working double shifts, thus violating California Labor Code and California’s Unfair Competition Law.

For more than two months, both parties involved in the wage and hour class action lawsuit have been finalizing details to reach a suitable settlement agreement. During these proceedings, FedEx has agreed to clarify employment meal break and rest period policies in addition to the monetary settlement.

FedEx denies all liability, but has agreed to settle the wage and hour class action lawsuit to avoid uncertainty and prolonged court procedures and expenses.

If this FedEx unpaid overtime class action settlement is approved by California federal court, then a Class of current and former California FedEx package handlers of nonexempt status who were employed by the company Sept. 24, 2009, through Sept. 1, 2014 will receive monetary compensation.

This is not the first wage and hour class action lawsuit FedEx has faced for alleged California Labor Law and FLSA violations. In April, the shipping company paid a $2 million wage and hour class action settlement to settle allegations brought forth by current and former service managers who accuse FedEx of misclassifying them as exempt form overtime pay.

The FedEx Wage and Hour Class Action Lawsuit is Aaron Rangel v. FedEx Ground Package System Inc., et al., Case No. 8:13-cv-01718, in the U.S. District Court for the Central District of California.

Meal Break and Rest Period Wage and Hour Labor Laws

California Labor Laws and Federal Labor Standards Act were established by the state and national government to protect employees from employer exploitation and ensure that these individuals receive fair wages.

California Labor Laws have additional rules that strictly govern employee rest and meal periods.

According to the California Division of Labor Standard Enforcement, “no employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than 30 minutes, except that when a work period of not more than six (6) hours will complete the day’s work the meal period may be waived by mutual consent of the employer and the employee.”

Also, “if an employer fails to provide an employee a meal period in accordance with the applicable provisions of this order, the employer shall pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each workday that the meal period is not provided.”

FedEx is not the only business facing wage and hour class action lawsuit for alleged labor code violations. Many current and former employees of various California based businesses are filing unpaid overtime lawsuits or joining existing wage and hour class action lawsuits.

Join a Free Unpaid Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.