PORTLAND — Just a few months after settling a massive $240 million unpaid overtime class action lawsuit which spanned 22 states and included 12,000 plaintiffs, FedEx agreed to another settlement in an Oregon federal court to settle three other similar suits. The $15.45 million settlement finally resolved the claims originally brought 10 years ago claiming the drivers were improperly classified as independent contractors as opposed to actual FedEx employees.
Almost 400 drivers who worked for FedEx from July 1999 until September 2015 will share in the award to compensate them for overtime wages and illegal deductions allegedly made by the defendant. While the settlement is not an admission of guilt on the part of FedEx, the award is nonetheless significant since the defendant ultimately changed its employment practices to comply with state and federal laws.
According to the complaint, FedEx withheld money from certain driver’s paychecks for the electronic scanners necessary to track deliveries. However, since an Appeals Court determined the drivers were actually employees, the deductions were ultimately illegal since employers must inform and derive consent from workers to make such deductions.
Under the terms of the settlement, drivers who worked more than 35 hours per week are eligible to receive $128 per work week to reimburse them for the scanners. Those who worked more than 40 hours per week driving trucks 10,000 lbs or less could receive up to $147 for every week they worked overtime.
Are Delivery Drivers Independent Contractors?
FedEx is just one of many large for-hire carriers in the U.S. under fire for the way it hired and supervised its delivery drivers. For years, the shipping giant relied on classifying is employees as independent contractors to recoup business expenses through deductions and skirt overtime payments during busy seasons.
While many businesses rely heavily on independent contractors to fulfill their business needs, the contractor must exercise certain freedoms while on the job. The IRS even has a 20-factor independent contractor test to help businesses and workers discern whether they are in compliance with wage and labor laws.
Delivery Driver Overtime Pay Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.