A group of 500 FedEx delivery drivers will share in an award of $2 million after the company reached a settlement with New York State Attorney General Barbara Underwood. Underwood’s office sued FedEx in 2010, alleging the company had unlawfully classified the drivers as independent contractors rather than employees.

A Common Practice

Unfortunately, many companies will, as Underwood put it, “dodge their legal obligations” by labeling workers as independent contractors instead of what they actually are – employees. They do this in order to avoid paying benefits, such as overtime compensation, sick leave, vacation pay, and others.

In this particular case, Underwood sought damages for unpaid overtime as well as unlawful deductions from worker’s paychecks. One group of drivers will receive compensation for unpaid overtime, while the other group will be compensated for unlawful deductions.

The drivers will need to submit a claim form in order to obtain their money.

Have You Been Unfairly Classified as an Independent Contractor?

If you believe you should be classified as an employee rather than an independent contractor, Baron & Budd may be able to help you obtain substantial compensation. You may be eligible for not only overtime pay but other benefits such as vacation time and paid holidays.

However, proving an employer/employee relationship can be extremely complex, requiring the help of an experienced attorney. Baron & Budd has a long track record of winning these types of cases, and we may be able to help you as well.

Stop missing out on the money you may have coming to you. Give us a call at 866-238-4143 or contact us using our convenient online form for more information.