Last week FedEx announced that it had reached a $227 million joint settlement of independent contractor misclassification class action lawsuits across 19 states. The District Court for the Northern District of Indiana granted final approval of the settlements, with payments to the 12,627 driver-plaintiffs residing in Indiana and 18 other states ranging from $250 to more than $116,000. This settlement follows a $226 million dollar settlement in June 2015, for a California class action. Both settlements resolve claims that FedEx misclassified its Ground and Home Delivery drivers as independent contractors, with the drivers alleging they were undercompensated and should have been classified as employees under applicable laws.
The courts largely based their decisions on the FedEx independent contractor agreement, which FedEx had drafted itself and used across all its Ground Division drivers. The Kansas Supreme Court wrote a harsh critique of the contract, stating that FedEx’s independent contractor agreement was a “‘brilliantly drafted contract creating the constraints of an employment relationship with [the drivers] in the guise of an independent contractor model—because FedEx not only has the right to control, but has close to absolute actual control over [the drivers] based upon interpretation and obfuscation.’”

Following those three decisions, FedEx changed legal course and decided to stop fighting and settle, resulting in these settlements totaling $453 million.
Another FedEx Worker Misclassification Case Settled for $227 million - TalentWave