FedEx has settled a wage and hour lawsuit brought by two former delivery drivers, just one day after a jury trial began in California federal court.
The Case
The drivers delivered packages for FedEx Ground, but they were hired through Bay Rim Services, an independent service provider. They alleged that Bay Rim and FedEx were joint employers and that both broke California law by failing to:
- Pay overtime
- Provide meal and rest breaks
- Keep accurate records of hours worked and pay
The claims involved about $13,000 in back pay.
The Trial
Opening statements began on October 24, 2022, before U.S. District Judge Jeffrey S. White in the Northern District of California. The drivers’ attorneys argued that FedEx was jointly liable for the violations. FedEx argued that it had no role in the drivers’ employment and that the contractor alone was responsible.
After one day of testimony, the parties reached a settlement. The terms were not made public.
Why It Matters
Many large companies hire delivery drivers and other workers through outside contractors, then claim they aren’t responsible for how those workers are treated. Under California law, a company can still be a joint employer if it controls the work, and joint employers can be held liable for wage violations. When companies like FedEx settle rather than let a jury decide, it shows how seriously they take that risk.
Hired through a contractor and not paid overtime or given breaks? Contact Aiman-Smith & Marcy for a free consultation at (510) 760-7005.
Source: Hinds v. FedEx Ground Package System Inc., Case No. 4:18-cv-01431, U.S. District Court, Northern District of California. As reported by Law360.