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Commonly Asked Questions


Why did I receive this Notice?

Answer:

You received notice because FedEx Ground’s records show that you signed a FedEx Ground Pickup and Delivery Contractor Operating Agreement, to provide service in Minnesota, that was in effect between April 5, 1999 and October 15, 2007, and that you may have personally worked as a full-time contractor under that contract at some point between April 5, 1999 and the end of the Release Period which is April 30, 2016.

What is the lawsuit about?

Answer:

The lawsuit is about whether FedEx Ground misclassified pick-up and delivery contractors as independent contractors rather than as employees, and failed to provide them with legal rights that employees have under Minnesota law. On behalf of all contractors in Minnesota, Plaintiffs sought compensation for, among other things, illegal wage deductions and unreimbursed employment expenses. FedEx Ground maintains that the independent contractor classification is appropriate and denies that it has broken any laws.

In 2008, the Court allowed the lawsuit to be a class action on behalf of contractors in Minnesota for claims pertaining to rescission, unjust enrichment, and declaratory relief. In December 2010, the District Court overseeing the case ruled Texas contractors were independent contractors and subsequently, Plaintiffs appealed that decision to the United States Court of Appeals for the Seventh Circuit. While on appeal, the case was mediated and the parties subsequently entered into an agreement to settle this action.

How do I know if I am a part of the Settlement?

Answer:

You are part of the settlement if you meet all the following criteria:

  • (1) Signed Operating Agreement. You entered into a FedEx Ground or FedEx Home Delivery Pick Up and Delivery Operating Agreement (now known as OP-149 and Form OP-149-RES) that was in effect between April 5, 1999 and October 15, 2007; 
  • (2) Personally Drove Full Time. You drove a vehicle on a full-time basis (meaning exclusive of time off for commonly excused employment absences) any time between April 5, 1999 and October 15, 2007, to provide package pick-up and delivery services pursuant to that Operating Agreement; AND 
  • (3) Operated out of a Minnesota Terminal. You were dispatched out of a terminal in the state of Minnesota between those dates.
If you do not satisfy any one of these three conditions, you are not a member of the Class and are excluded from participation in this lawsuit.

What does the Settlement provide?

Answer:

FedEx Ground has agreed to pay $8,300,000 to resolve the class claims asserted in the Minnesota action.  The money will also be used to pay administration costs, Plaintiffs’ attorneys’ fees and costs, and to pay the named Plaintiffs for their time and service to the Class. The entirety of the Net Settlement Fund—the total settlement amount after payment of attorney’s fees, litigation costs, and service payments to Named Plaintiffs who participated in the litigation—will be distributed to the Class with no money returned to FedEx Ground.

How much will I receive?

Answer:

Your settlement amount is correct.  However, the weekly payment rate in your settlement notice is incorrect, which is why the amounts do not compute.  Here are the correct numbers:  All Class Members will receive a Settlement payment of $35.04 for each interest adjusted workweek during which it appears, based on data derived from FedEx Ground records, that they personally drove one of their FedEx Ground routes 35 or more hours, and a lower payment of $12.26 for workweeks in which they drove between 16 and 35 hours per week.  Class members, who, based on data derived from FedEx Ground records, did not personally drive more than 16 hours in any workweek during the recovery period will receive a flat minimum payment of $250.00.  The average per Class member recovery, net of attorneys' fees and costs, will be approximately $12,312.00.

The weekly settlement amount and the weeks worked that are included in your settlement computation are "weighted" for interest.  This means that the weeks worked earlier in the period are more valuable than weeks worked later in the period because more interest accrued for the weeks that were worked earlier.

When would I get my payment?

Answer:

Settlement checks mailed on June 30th, 2017.  PLEASE BE SURE TO CASH YOUR CHECK AS SOON AS POSSIBLE.  If you do not cash your check by the void date listed on the check, you will forfeit your entitlement to the payment.  Funds remaining after the void date will be redistributed to class members who claim their settlement funds.  Please contact Rust Consulting at 1-855-793-1369 with questions regarding your Settlement check, or to update your contact information.

What am I giving up to get a payment?

Answer:

Under the terms of the settlement, you will be releasing FedEx Ground Package System, Inc., and parties related to it, from all claims that were asserted or could have been asserted in this action relating to allegations of misclassification as an independent contractor set forth in Plaintiffs’ Operative Complaint.  The release extends to April 30, 2016.

PLEASE NOTE: If the Court approves the Settlement, your claims described above will be extinguished.

Do I have a lawyer in the case?

Answer:

You may hire your own attorney at your own expense if you choose to do so, but you are already represented by Class Counsel as set forth in the Notice. 

The attorneys representing the Class are: Robert I. Harwood, Beth Ross, Susan E. Ellingstad, and J. Gordon Rudd.


How will lawyers and Plaintiffs be paid?

Answer:

Class Counsel will ask the Court to approve payment of (a) up to 30% of the Settlement Fund for attorney’s fees and expenses to compensate the many attorneys who for eleven years invested thousands of hours and significant expenses investigating the facts, litigating the case, including appeals, and negotiating the settlement and (b) $15,000 each in service awards for the Representative Plaintiffs for their efforts in pursuing this lawsuit, producing documents, and providing testimony on behalf of the Class. The Court will decide the attorney’s fees and expenses to be paid.

What happens if I do nothing at all?

Answer:

If you are a Class Member and do nothing and the Court approves the settlement, you will be sent your proportional share of the Settlement Fund at the address at which you received this notice. If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue.

How to Change the Name of a Company That Is No Longer in Operation to an Individual

Answer:

You will need to submit a completed W9 for the individual.  If one was not provided in your notice packet it can be obtained off the IRS website (www.irs.gov).  You will also need to provide dissolution paperwork for the company in question.  This information must be submitted to the Settlement Administrator.

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