FedEx to Pay $2M to Settle NY Wage Lawsuit on Worker Status

FedEx Ground Package System Inc. agreed to pay $2 million to settle a New York lawsuit alleging that it underpaid some 500 drivers by unlawfully classifying them as independent contractors.

The settlement in the state Supreme Court for New York County, announced Dec. 20 by New York Attorney General Barbara Underwood, is the latest development in a line of cases asserting that the package delivery company’s drivers are employees entitled to wage protections. The company agreed to pay $15.4 million in 2016 to settle a worker misclassification case in Oregon, and also faces a class action filed Dec. 14 in ...