20 State Multi District Settlement

Discussion in 'FedEx Discussions' started by bacha29, Sep 16, 2016.

  1. bacha29

    bacha29 Well-Known Member

    Estimated dollar amounts contractor/ claimants will receive under the proposed class action out of court settlement ( Willis vs. fedex Ground )are being sent out. To no one's surprise contractors will receive considerably less than that which contractors in California received with the average settlement being $12,000. Indications are that the counsel for the plaintiffs wanted to wash their hands of the matter but at the same time extract as much as possible in terms of fees.. Given that the monies received will be fully taxable and for the most part lumped into one or two years each contractor needs to get with their tax adviser to see what can be done to minimize the tax liability. What really stands out in the settlement in addition to the small payment is that if a contractor accepts the settlement it will extinguish all claims from the period of July 25,2001 up to and including April 30,2016. What it means for the contractors who remain is a greatly diminished litigation window. In other words what it means for the remaining contractors is that X can now do whatever they damn well please to you and there's next to nothing you can do about it.
     
  2. bbsam

    bbsam Moderator Staff Member

    surprised?
     
  3. Yomama11

    Yomama11 Member

    Man can I get a settlement? I transferred from market level A to market level B...cost me $1.27 an hour..took me 2 years to get back to the pay that I had in my old market...word came out this month that A and Breakfast markets are the same and if you transfer you wouldn't lose or gain any pay because they're in the same market level group now...Smh!!! Just using the minimum 40 hour week 52 weeks in a year for 2 years I'm out $5400..not to mention I would be in step 4 of the new step progression chart instead of step 2..fedex stay screwing people over
     
  4. It will be fine

    It will be fine Well-Known Member

    Sounds low to me, but I'd guess there's a lot of employees in the settlement without many years of service bringing the average down. To me it's just another loss for fedex that they'll take back from me in the next round of negotiations.
     
  5. dmac1

    dmac1 Active Member

    It'll be based on the number of weeks you worked. I looked for and could not find the settlement terms of payment. IN Oregon, the settlement was about $7000 per year.
     
  6. Cactus

    Cactus Just telling it like it is

    [​IMG]
     
  7. STFXG

    STFXG Well-Known Member

    Willis vs FedEx is your state. Just sayin. I can live with the check I'm getting. Free money when I agreed to the contract and knew what I was signing up for.
     
  8. dmac1

    dmac1 Active Member

    So you knew it was an illegal contract when you signed? In reality, fedex should have been paying UI, worker's comp, and contributing half of the social security taxes. Because of the contract that is illegal, you will get less at retirement or if you become permanently disabled. You should not have been required to pay for uniforms or for insurance on the cargo, or pay for the scanner. You should have been paid more when you were required to work more than 8 hours. When I signed the contract, I believed from the way the contract was written, that I could control my own hours, but fedex decided that they could add more areas until I was working about 11 hours a day. Their idea of 'full use' of my van was different than mine, and of course, I was told that I was risking my contract if I disagreed.
     
  9. bacha29

    bacha29 Well-Known Member

    The California Ground contractors received $ 240 per week driven and the HD's received $190 per week. Compare that to the pay out rate you received and the tell me that you're happy with it.Even though it applies to a period of 6 years the pay out will be all lumped into one year and on a 1099.
     
  10. dmac1

    dmac1 Active Member

    California has stronger laws about what an employer can require an employee to provide. Most of the difference was that California requires the employer to pay vehicle expenses. Oregon, and other states allow the employee to pay vehicle costs as long as paying them doesn't put the employee below minimum wage. I knew I had vehicle expenses when I signed the contract, but it would have been nice to get all those costs back. I guess it pays workers to live in a more employee friendly state.

    All said, at about $130 per week, I feel that is fair, except for the difference in earnings on my social security statements. As an employee, taxes should have been paid on my entire paycheck, not my net after deduction, and fedex should have paid half of that. Going back to amend taxes 10+ years is probably not an option, but I am definitely looking into it.
     
  11. STFXG

    STFXG Well-Known Member

    Who wouldn't want more? My schedule has never been set. I've never felt overly controlled. I knew the terms of the contract and accepted it. Free money.
     
  12. STFXG

    STFXG Well-Known Member

    Even $130 would be nice. Nowhere near that. The second settlement group got the shaft compared to the west coast.
     
  13. dmac1

    dmac1 Active Member

    You gotta move to a liberal state that cares about the rights of people over corporations.
     
  14. bacha29

    bacha29 Well-Known Member

    The guys in Pennsylvania got waxed. Less than half what the west coast got . Don't think for a minute the fact that XGround being a major Pittsburgh employer did not have an impact on the sweetheart Pennsylvania settlement.
     
  15. STFXG

    STFXG Well-Known Member

    But then I might have to pay MY employees something.
     
  16. dvalleyjim

    dvalleyjim Member

    The CA case has been appealed by two objectors. No one is getting a pay out until the appeal is settled. The whole pay out could be thrown out if these guys win on appeal The appeal process takes 1.5 to 2 years. Apparently no one gets paid in a class action lawsuit.
     
  17. bacha29

    bacha29 Well-Known Member

    Thank you for the update. Funny part about the Eastern U.S. proposed settlement is that there is a hearing scheduled in January as the next step in the process. It will be heard in front of the same judge who ruled back in 2010 that we were independent contractors. Rest assured it will be a cold day in hell before there is any attempt to bring forth a final all encompassing definition of just who or what is a independent contractor because the mess that exists at the present time is a litigator's dream come true.Even though counsel for the plaintiffs are trying hard to shove the settlement down the throats of the contractors I believe that there will be at least a few formal objections. However I doubt that Judge Miller will be willing to listen to them.
     
  18. bacha29

    bacha29 Well-Known Member

    I see that your opinion has changed now that you have seen the huge difference in the proposed settlement. Furthermore it is in no way shape or form " free money". Depending on the individuals own overall taxable income the tax rate could be as high as 39% at the federal level plus state income may be applicable as well as local wage tax. Free money, huh?
     
  19. M I Indy

    M I Indy Member

    Class members are suing counsel for malpractice also.

    Objections will be so damning that Judge Miller will have no choice. It's his case, no way to get him off it, many eyes will be watching, he won't be able to sweep it under after Ninth circuit straightened his butt out. Finally class members will be heard about how this case has been botched and they have been bullied by MDL lead counsel.
     
  20. STFXG

    STFXG Well-Known Member

    Hasn't changed at all. Like i said, who doesn't want more? If anyone who owns a business is paying 39% in taxes then they need a better accountant.