NEW HAVEN, Conn. — A $2 million overtime claim settlement awaits court approval after FedEx Ground Package Systems Inc. filed its offer in federal court. The lawsuit, brought on behalf of current and former service managers for FedEx Ground, claims the FedEx unit misclassified its managers as exempt and denied them overtime pay. While the company denies any labor law violations, it has opted to settle the dispute.
The lawsuit claims FedEx Ground line-haul service managers were mislabeled as exempt, although they frequently did work similar to hourly employees. Even if an employee has a “manager” job title, if the “manager’s” duties are more similar to hourly employees than are supervisory, the manager is likely entitled to overtime pay and not exempt. Nonexempt employees are entitled to overtime pay, time and a half, if they work over 40 hours a week.
Michael Bozak, a former service manager, initiated the overtime lawsuit and proposed class action in May 2011. In his filing, he sought both class action relief for Fair Labor Standards Act (FLSA) violations and individual relief under the Connecticut Minimum Wage Act. The parties reached a tentative settlement agreement in June 2012. But Bozak refused to sign the agreement, as it would end his individual claim too, and the court refused to approve the settlement. However, after further legal battles and the court threatening to dismiss the entire lawsuit, the parties restarted settlement talks in February of this year. These new talks resulted in the $2 million settlement offer.
Class members included in the new settlement are current and former line-haul service managers who worked for FedEx Ground between August 2010 and March 2013. The settlement payouts will be based on the number of weeks worked during that time frame. In order to receive settlement payments, potential class members must opt-in to the settlement. If the proposed settlement is approved, potential class members will receive a notice of the settlement. This notice will inform class members of their rights, the terms of the settlement, and how they may opt-in and receive their portion of the settlement. In many cases where there are multiple claims, as in this case with the FLSA and state claim, the settlement will address one or all of the claims. For this reason it is important to carefully read settlement terms and notices.
If you believe you have been denied proper overtime wages or recently received a settlement notice, our knowledgeable team of overtime pay lawyers will evaluate your situation and explain your legal options. Call our experienced overtime lawyers today at (855) 754-2795 or complete the Free Unpaid Overtime Case Review form. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.