FedEx Ground Package System Inc. has agreed to pay $226.5 million in order to settle a class action lawsuit that claims the shipping company misclassified drivers as independent contractors rather than employees which deprived them of certain benefits.
Seventeen pick-up and delivery drivers filed the FedEx class action lawsuit over allegations that FedEx Ground and FedEx Home Delivery failed to provide them with employee rights under California law including: unreimbursed employment expenses, illegal wage deductions, failure to provide meal and rest breaks, and unpaid overtime pay.
In addition, the FedEx Ground class action lawsuit claims that according to company policy, the defendant “routinely threatens contract termination of any driver requesting time off for an illness or injury to himself or covered family member.“
The 17 plaintiffs allege that FedEx requires pick-up and delivery drivers who seek a leave that would be covered by the Family Medical Leave Act to hire pre-approved temporary replacement drivers at the driver’s own expense.
At the time that the FedEx class action settlement was reached, the case was moving towards trial to determine if FedEx Ground violated the California labor laws.
FedEx Ground continues to claim that the independent contractor classification is appropriate and denies that it has broken any laws but agreed to settle the wage and hour class action lawsuit in order to avoid the cost of further litigation.
Who’s Eligible
The FedEx Ground class action lawsuit settlement is open to Class Members in three different classes:
General Class – Includes all persons who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement in order to drive a vehicle on a full-time basis from Nov. 17, 2000 through Oct. 15, 2007 and were dispatched out of a terminal in the state of California between Nov. 17, 2000 and Aug. 31, 2015.
Overtime Subclass – Includes Class Members who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement in order to drive a vehicle on a full-time basis from Nov. 17, 2000 through Oct. 15, 2007 and were dispatched out of a terminal in the state of California between Nov. 17, 2000 and Aug. 31, 2015 to operated a vehicle with gross vehicle weight rating of less than 10,001 pounds.
Meal and Rest Period Settlement Subclass – Includes all persons who entered into a FedEx Ground or FedEx Home Delivery Form Operating Agreement from Nov. 17, 2000 through Oct. 15, 2007 in order to drive a vehicle on a full-time basis since Aug. 1, 2011 to provide package pick-up and delivery services pursuant to the Operating Agreement; and were dispatched out of a terminal in the state of California between Aug. 1, 2011 and Aug. 31, 2015.
Potential Award
Varies.
The FedEx Ground Settlement of $226.5 million will be divided among Class Members in the following Subclasses:
General Class – Class Members will receive a “Weekly Base Settlement Payment” for each week in which they worked full-time (defined as 35 hours or more) adjusted for each year during the claim period to reflect accrued statutory interest at rate of 10% simple. The estimated amount that will be awarded to Class Members who drove for FXG is $240 and FHD is $190.
An absolute minimum payment of $250 will be allocated to persons who received the class notice, but who did not fit the FedEx General Class definition during any portion of the class period.
Overtime Subclass – Class Members will receive additional settlement payments in pro rata settlement shares from an overtime settlement reserve fund of $16 million. Payments are calculated based the daily and weekly overtime hours for members of the Overtime Subclass as derived from records produced by FXG.
Meal and Rest Period Settlement Subclass – Members of the General Class who continued to drive after Aug. 1, 2011, will receive additional settlement payments in pro rata settlement shares from a meal and rest period settlement reserve fund of $5.6 million, calculated based on days worked between Aug. 1, 2011 and Aug. 31, 2015, as derived from records produced by FXG.
Proof of Purchase
In order to receive payment from the FedEx class action settlement, Class Members must meet the eligibility criteria and submit a valid Claim Form before the deadline of Jan. 15, 2016.
Claim Form Deadline
01/15/2016
Case Name
Dean Alexander, et al. v. FedEx Ground Package System Inc., Case No. 3:05-CV-0038 EMC, in the U.S. District Court for the Northern District of California
Final Hearing
03/24/2016
Settlement Website
Claims Administrator
Alexander v FedEx Settlement Administrator
c/o Rust Consulting Inc. – 4920
PO Box 2396
Faribault, MN 55021-9096
800-711-1958
c/o Rust Consulting Inc. – 4920
PO Box 2396
Faribault, MN 55021-9096
800-711-1958
No comments:
Post a Comment