USPS to Pay $700,000 to Settle Inspectors’ Overtime Wage Lawsuit

Aug. 18, 2025, 6:31 PM UTC

The US Postal Service agreed to pay $700,000 to resolve suing postal inspectors’ allegations that it stiffed them on pay for extra work during a training program.

The parties submitted a joint letter on Aug. 15 informing Magistrate Judge Katharine H. Parker of the settlement agreement. Parker ordered the Fair Labor Standards Act suit to be dismissed with prejudice from the US District Court for the Southern District of New York on Monday.

  • The workers who attended USPS’s mandatory 16-week postal inspector basic training course sued on behalf of a proposed FLSA collective in 2023. They allege USPS owes ...

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