Gonzalez v. RXO Last Mile Settlement: $2.25M Terms and Payouts

The Gonzalez v. RXO Last Mile settlement is a $2.25 million class action resolution that received final court approval on May 29, 2026, ending a lawsuit brought by delivery drivers who claimed RXO Last Mile, Inc. misclassified them as independent contractors while they made Lowe’s deliveries in Massachusetts. Settlement checks for eligible claimants were expected to go out on or around July 23, 2026.¹ RXO agreed to the payment while denying any wrongdoing.²

Who Was Included in the Class

The settlement covered drivers who performed deliveries in Massachusetts on behalf of RXO (formerly XPO) to Lowe’s customers between July 20, 2015, and August 12, 2025. Helpers were excluded, and so were any drivers who had signed contracts directly with RXO.¹

That exclusion matters. Drivers in the Gonzalez class worked for intermediary contract carriers, not RXO directly. Drivers who signed contracts with RXO were the subject of a separate case, discussed below.

How the $2.25 Million Was Divided

The settlement fund was allocated across fees, costs, service awards, and payments to class members:³

Attorneys’ fees of up to $750,000, or one-third of the fund.
Litigation expenses of up to $26,303.
Settlement administration costs of up to $40,000.
Service awards of up to $25,000 each for the three lead plaintiffs, totaling $75,000.
Service awards of up to $2,500 each for seven drivers who sat for depositions, totaling $17,500.
The remainder distributed to class members.

Individual payouts were calculated proportionally, based on each driver’s estimated number of deliveries to Lowe’s customers in Massachusetts. Delivery counts came from data RXO provided, supplemented by estimates drivers submitted on their claim forms.¹

Key Dates and When Payments Arrive

Class members had until April 9, 2026, to submit a claim, file an objection, or opt out. The final fairness hearing was held over Zoom, and the court entered its approval and dismissal orders on May 29, 2026. The docket does not reflect any objections. Payments were anticipated to be mailed on or around July 23, 2026.⁴¹

The claims process was run by Simpluris, a claims administrator based in Santa Ana, California. Plaintiffs were represented by Fair Work, P.C., a Boston employment firm led by Stephen Churchill.¹

What the Drivers Alleged

Three drivers — Ramon Gonzalez, Victor Rodriguez Ortiz, and Addelyn Marte — filed the lawsuit on February 14, 2019, in the U.S. District Court for the District of Massachusetts.⁴⁵²

RXO is a logistics company that arranges “last mile” deliveries of heavy goods like furniture and appliances. It contracts with independent motor carriers, who then hire drivers to deliver on behalf of retailers such as Lowe’s. Because the drivers signed on with those intermediary carriers rather than RXO itself, the case turned on whether RXO functioned as a joint employer under Massachusetts law.

How the Case Got to Settlement

On January 10, 2022, Judge Timothy S. Hillman certified the class for the misclassification and wage claims. The court found that whether RXO’s oversight of drivers effectively made it their employer was a question common to the whole class and outweighed individual differences among the roughly 240 contract carriers involved. The court pointed to RXO’s standardized onboarding, drug tests and background checks, delivery manifests with specific timeframes, XPO-branded identification requirements, and a company-wide mobile app for tracking deliveries.⁶

On August 7, 2024, Chief Judge F. Dennis Saylor IV denied RXO’s motion to decertify the class and denied cross-motions for summary judgment from both sides, finding genuine factual disputes about how much control RXO actually exercised over the drivers.⁷⁴ With trial ahead, the parties settled.

Related RXO Driver Cases

Drivers who signed contracts directly with RXO were not part of the Gonzalez settlement. They were covered by a companion Massachusetts case, Muniz v. RXO Last Mile, Inc. (No. 4:18-cv-11905), which settled for $2.9 million on behalf of roughly 145 class members. Bloomberg Law reported an average payout of about $12,000 per driver and a maximum above $52,000.⁸

In New Jersey, drivers pursued a separate case, Espinal v. Bob’s Discount Furniture LLC (No. 17-02854), alleging misclassification and unpaid overtime. In March 2025, a federal court granted summary judgment for Bob’s Discount Furniture, finding the retailer was not a joint employer, but claims against RXO survived. As of March 2026, the court reaffirmed RXO’s liability for overtime at one and a half times the minimum wage.⁹¹⁰

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RXO Last Mile Settlement. Gonzalez v. RXO Last Mile, Inc. Settlement FAQ
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RXO Last Mile Settlement. Gonzalez v. RXO Last Mile, Inc. Settlement
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ClaimDepot. RXO Last Mile Settlement
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CourtListener. Gonzalez v. RXO Last Mile, Inc., Docket 1:19-cv-10290
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GovInfo. Gonzalez v. RXO Last Mile, Inc., Memorandum and Order
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vLex. Gonzalez v. XPO Last Mile, Inc., 579 F.Supp.3d 252
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CaseMine. Gonzalez v. RXO Last Mile, Inc.
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Bloomberg Law. RXO Drivers Ink $2.9 Million Deal in Misclassification Lawsuit
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Bloomberg Tax. RXO Last Mile Liable for Trucker Overtime Despite Clarification
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Bloomberg Law. Bob’s Furniture Exits Delivery Driver Wage Lawsuit Against RXO