FedEx has agreed to a roughly $228 million settlement over a lawsuit alleging the company misclassified more than 2,000 California drivers as independent contractors and thus owes them overtime pay and other benefits.
FedEx originally prevailed in a federal court proceeding, which ruled that the company was not subject to California labor laws. An appeals court, however, overturned that decision.
FedEx then appealed to the 9th U.S. Circuit Court of Appeals in San Francisco, but before the issue could come to trial, both sides agreed to a settlement totaling some $228 million for the workers at FedEx Ground Package Systems, covering the period between 2000 and 2007.
FedEx confirmed that the branch in question is no longer operating.
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