FedEx to Pay $2.5 Million to Settle Drivers’ Classification Suit

Fedex Ground Package System Inc. will pay $2.47 million to settle a class action alleging it made unlawful deductions from drivers’ wages by misclassifying them as independent contractors, under a settlement approved by a federal court in New Jersey.

After payment of attorneys’ fees and incentive payments, the settlement will distribute $1,619,627.00 to the class claimants, with an average payout for class members of more than $15,700, under the agreement approved Tuesday by the U.S. District Court for the District of New Jersey.

The agreement also calls for $796,575 in attorneys’ fees and costs and $15,000 incentive payments to each ...