The Alexander v. FedEx Ground settlement is a $228 million agreement resolving claims that FedEx misclassified its California delivery drivers as independent contractors instead of employees. It covers full-time drivers who worked under a FedEx Ground or FedEx Home Delivery Operating Agreement out of a California terminal between November 17, 2000, and October 15, 2007.1SEC.gov. Class Action Settlement Agreement
Who Qualifies as a Class Member
Eligibility turns on three things at once. A driver must have worked full-time, must have been under a FedEx Ground or FedEx Home Delivery Operating Agreement, and must have been dispatched from a California terminal. The qualifying window runs from November 17, 2000, through October 15, 2007. Drivers who fall outside any one of those conditions are not covered.2SEC.gov. Class Action Settlement Agreement – Section: Certified Class
Why FedEx Paid
The U.S. Court of Appeals for the Ninth Circuit ruled that the drivers were employees under California law, not independent contractors as FedEx had labeled them. That ruling drove the settlement, because it meant the drivers were entitled to protections and benefits the company had denied them.1SEC.gov. Class Action Settlement Agreement
What the $228 Million Covers
The $228 million fund resolves claims for unpaid overtime and work-related expenses under California labor law. It is not paid out entirely to drivers. The same fund also pays class counsel’s fees, administrative costs, and certain employer-side taxes.3SEC.gov. Class Action Settlement Agreement – Section: Payment to Class Settlement Fund
How Individual Awards Are Calculated
Each driver’s share is set by a formula tied to how much they actually worked. The factors that go into the calculation are:3SEC.gov. Class Action Settlement Agreement – Section: Payment to Class Settlement Fund
- The dates and total length of time worked under the contract
- Total hours and days worked
- Vehicle types used and total miles driven
- The FedEx Ground division the driver worked for
Paperwork Drivers Had to Submit
To collect, an eligible driver had to file two documents with the claims administrator: a Claim Form requesting a share of the fund, and an IRS Form W-9 supplying the taxpayer identification number needed for tax reporting.4SEC.gov. Class Action Settlement Agreement – Section: Definitions
When Payments Went Out
The administrator reviewed each claim for validity before any check went out. Payments were not released on the court’s first approval; they waited until the settlement’s official effective date, which allowed time for appeals and other legal steps to run their course. Approved awards were then mailed to drivers.3SEC.gov. Class Action Settlement Agreement – Section: Payment to Class Settlement Fund
Taxes on the Award
Recipients handle their own tax filings on the money. Part of a payment may count as taxable income, and the administrator issues the corresponding tax form. Depending on how a payment is characterized, a driver receives either a Form 1099 or a Form W-2.5SEC.gov. Class Action Settlement Agreement – Section: Income Tax Obligations