FedEx class action settlement overview:
- Who: Two former FedEx employees asked a court to approve a settlement with Federal Express Corporation.
- Why: FedEx agreed to pay $30.8 million to resolve claims it underpaid Washington workers and restricted outside employment.
- Where: The FedEx class action settlement was reached in Washington federal court.
- How to file a claim: No claim form is required. Additional settlement details have not yet been announced. Sign up for our free newsletter to receive updates as more information becomes available. You can also browse our list of open settlements to find other claims you may qualify for.
FedEx agreed to pay $30.8 million to resolve a class action lawsuit alleging it shorted Washington workers on wages and breaks and barred them from taking second jobs.
Two former FedEx employees asked U.S. District Judge John H. Chun on Oct. 7 to grant preliminary approval of the deal. The court has not yet ruled on the request.
The FedEx employee lawsuit claims the company failed to provide and pay for required meal and rest breaks. It also alleges FedEx edited and rounded time records in a way that deprived non-exempt workers of straight-time and overtime wages.
The plaintiffs further claim FedEx and its former affiliate FedEx Ground kept a handbook policy that unlawfully restricted lower-earning workers from holding outside jobs. The policy said employees “may not work for our competitors, suppliers or contractors, nor work for more than one FedEx company at the same time,” according to the motion. FedEx denies any wrongdoing.
The parties reached the FedEx settlement after a failed mediation in October 2025 and a second, all-day session on July 22. The deal is also intended to resolve overlapping moonlighting claims in a related proposed class action lawsuit pending in the same court.
The fund cannot fall below $25 million even if workers opt out, and no money will revert to FedEx. It would also cover attorneys’ fees of up to 33.33%, administration costs and service awards.
FedEx class action settlement splits fund among three subclasses
The FedEx class action settlement will divide the fund among three subclasses. The wage subclass would receive $12.8 million and covers an estimated 14,520 people who worked for FedEx in hourly or non-exempt positions in Washington from Aug. 16, 2021, through Aug. 1, 2026. Each member’s share would depend on weeks worked, pay and hours.
Two moonlighting subclasses cover non-exempt workers who earned less than twice the minimum wage and exempt workers with salaries less than $100,000 per year who worked in Washington for FedEx or FedEx Ground.
The older subclass, covering Jan. 1, 2020, through Aug. 15, 2021, has 5,444 members and would receive $544,400 or $100 each before fees and costs. The newer subclass, running from Aug. 16, 2021, through April 22, 2026, has 17,474 members and would receive about $17.5 million or $1,000 each before fees and costs.
“Every settlement class member who does not exclude themselves will automatically receive a settlement payment — no claim form is required,” the motion states.
If Judge Chun approves the class action settlement, workers would get notice by mail and email and have 45 days to object or opt out. A final approval hearing would follow.
What do you think about the FedEx settlement? Join the conversation in the comments.
The plaintiffs are represented by Gregory A. Wolk and Hardeep S. Rekhi of Rekhi & Wolk P.S. and Nicholas J. Ferraro of Ferraro Vega Employment Lawyers Inc.
The FedEx employee class action lawsuit is Case No. 2:24-cv-01666, in the U.S. District Court for the Western District of Washington.
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