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FedEx to settle IC misclassification case for $240 million

Reuters reported that FedEx Ground Package System Inc. agreed to pay $240 million to settle class-action lawsuits [1] in 20 states where drivers claim they were misclassified as independent contractors.

Attorneys are seeking preliminary approval for the settlements which will cover current and former pickup and delivery drivers.

“We are pleased to put this matter behind us as it relates to a contract that has not been in use for a number of years,” FedEx said in a statement. “FedEx Ground has made enhancements to its business in anticipation of rapidly changing competitive, legal and regulatory conditions. We continue to strengthen our contractual relationships with service providers to deliver industry-leading service to our customers.”

The settlement deals would end nearly 12 years of litigation, according to court records.

“The 20 class settlements presented to the court for preliminary approval are the product of 21 days of mediation,” according to court records. “Each case was mediated independently, unconditionally, and at arms-length with the assistance of an experienced and skilled mediator.”

FedEx a year ago agreed to pay $228 million [2] to settle independent contractor misclassification lawsuits with drivers in California and Oregon.

Other big independent contractor misclassification cases include Uber, which recently struck a deal [3] to pay up to $100 million to settle a lawsuit where drivers claim they were misclassified as independent contractors. In another lawsuit, Lyft agreed to pay $27 million to settle a lawsuit [4] where drivers claim they were misclassified.

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