New York, NY: A $2 million settlement has been reached in a proposed unpaid overtime class action between a FedEx Corp unit and former and current service managers. The plaintiffs allege that the courier company misclassified them as exempt from overtime.
The lawsuit, Michael Bozak and William Lawson v. FedEx Ground Package System Inc., case number 3:11-cv-00738, in the U.S. District Court for the District of Connecticut, was filed by plaintiff Michael Bozak in May 2011, alleging that FedEx Ground Package System Inc. violated the federal Fair Labor Standards Act (FLSA) when it mislabeled him and other line-haul service managers as exempt from overtime and subsequently failed to pay them for the time they worked beyond 40 hours a week. Bozak further alleged violations of the Connecticut Minimum Wage Act.
According to the lawsuit, Bozak and his colleagues were not exempt from overtime as they claimed to frequently do work similar to that of hourly clerks.
Under the terms of the agreement, a fund would be created from which class members' claims would be settled, as would associated legal costs. The named plaintiff, William Lawson, would receive special compensation of $10,000 for his role as lead plaintiff.
According to the settlement, eligible settlement class members are line-haul service managers employed by FedEx Ground between Aug. 1, 2010, and March 31, 2013, who opt in to receiving a portion of the settlement. Payouts will be determined using a formula based on the number of weeks eligible former and current employees worked during the period.
