FedEx Corp. has agreed to shell out a whopping $26.8 million to end a long-running dispute over whether California delivery drivers in the company’s ground unit are independent contractors or employees. Last year, a California appellate court ruled in the case that about 200 ground drivers were misclassified as independent contractors. The drivers had sued FedEx seeking work-related reimbursements, which the company denied on the basis that the drivers were contractors. According to FedEx, most of the settlement—about $19.5 million—will go toward interest, court costs, and the drivers’ attorney fees.
Paying Overtime: 10 Key Exemption Concepts
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