FedEx Paying $2.1M To End OT Underpayment Suit In NY

By Braden Campbell (December 20, 2018, 6:30 PM EST) -- FedEx will pay $2.1 million to end a suit by the New York attorney general alleging the shipping company underpaid hundreds of workers by misclassifying them as independent contractors, according to a settlement agreement filed Thursday in New York state court.

About 500 package delivery drivers will split about $2 million in the deal, which also includes $100,000 to cover administrative costs, under the terms of the agreement. The suit, which the AG's office filed in 2010, alleged FedEx misclassified the workers as contractors rather than employees, denying them overtime and taking illegal deductions from their checks.

"Companies cannot misclassify employees...

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