RXO, Drivers Ink $2.9 Million Deal in Misclassification Lawsuit

June 17, 2024, 9:20 PM UTC

RXO Last Mile Inc. agreed to pay $2.9 million to settle claims it misclassified Massachusetts delivery drivers as independent contractors rather than employees.

The settlement would cover 66% of damages endured by nearly 145 class members who drove for RXO Last Mile, a furniture and appliance delivery service, according to a motion filed June 14 in the US District Court for the District of Massachusetts. The average settlement share is around $12,000 per class member, with the largest share amounting to over $52,000, the motion said.

The settlement includes $25,000 for plaintiff Justin Muniz, $20,000 for the remaining four ...

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