FedEx to Pay $2.1M Class Action Settlement over Missed Meal Breaks

FedEx has settled a class action lawsuit, agreeing to pay $2.1 million for violating California labor laws by denying meal breaks and rest periods to package handlers.

Non-exempt package handlers working in California between Sept. 24, 2009 and Sept. 1, 2014, are eligible to be part of the FedEx class action settlement, which is estimated to include nearly 16,000 employees.

The plaintiff, a former employee of FedEx Ground Package System Inc., a division of FedEx, accused the company of a litany of California labor law violations, such as failing to provide meal periods or rest breaks, failing to pay California’s $9 hourly minimum wage, regular wages and vacation wages, failing to pay reporting time, failing to pay wages owed at the time of termination of employment, as well as record keeping violations and unfair business practices.

The FedEx class action settlement document was filed in federal court in California in August.

Anyone employed by FedEx as a non-exempt package handler in California between Sept. 24, 2009, and Sept. 1, 2014 is eligible to be part of the California wage settlement. A timely, valid Claim Form must be submitted to receive a payment. At least 70 percent of the $2.1 million will be paid to Class Members, according to the terms of the class action settlement agreement.

The amount each Class Member receives will be determined by a point system, allotting one point for each day of active employment during the eligible period and an additional point if the employee worked more than one shift. Terminated employees will receive an additional 10 points.

In addition to the monetary award, FedEx has agreed to clarify its meal and rest period policies.

California labor laws require employers to compensate eligible employees for unpaid overtime, unpaid wages, working off the clock, misclassification, missed meals and breaks, putting on and taking off protective gear or uniforms – a practice known as donning and doffing –, paying less than minimum wage and tip pooling.

In his 2013 FedEx class action lawsuit, plaintiff Aaron Rangel alleged that FedEx broke California law by failing to provide employees who worked two shifts both a meal break and a rest break. FedEx also didn’t compensate employees for time spent in security checks, according to Rangel’s suit. The settlement states that $7,500 will be set aside for Rangel.

A judge approved the FedEx meal break settlement on Sept. 4 and it will head to a final approval and fairness hearing on Jan. 12.

The FedEx Meal Break 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.

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If you were the victim of a California labor law violation such as unpaid overtime, unpaid California minimum wage, or missed meal or lunch breaks, you may have a legal claim. See if you qualify to join a class action lawsuit against your employer by obtaining a free case evaluation now.