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20 State Multi District Settlement
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<blockquote data-quote="dmac1" data-source="post: 2393616" data-attributes="member: 60252"><p>If you are in one of the states where settlement covers, it may actually be a good deal, depending on your states laws that control what an employer can ask employees to pay for. The business support package is almost universally going to be something an employer should pay, as is worker's comp if required by your state. Our biggest expense as fedex drivers was the vehicle expenses, and in 4 of the 5 states I've worked in, employers can require that employees use their own vehicle without direct compensation explicitly spelled out. </p><p></p><p>Since you signed a contract, you were told beforehand that your vehicle compensation was included in your pay. So fuel, maintenance, and vehicle payments would not be reimbursed as part of a settlement if it went to trial. Some things are just a matter of law, and fedex would fight tooth and nail to prevent any and every cent of any claim made in court. A settlement is a sure thing, and the only other option is a courtroom trial, and there is no way to know if we would even win on the merits of the employment status, let alone reimbursement of expenses, since we all knew ahead of time what expenses we were paying. </p><p></p><p>IN some of the 20 covered states. the offer may actually be better than what could ever be expected in a trial, and in some it would be worse. In Oregon, I think it was almost fair. My biggest complaint is that without a trial, fedex faces no penalty for the years of mis-classification. The statute of limitation has passed for most of those years for the states themselves to pursue criminal penalties or even tax penalties. </p><p></p><p>I had thought about objecting myself until I thought about it like this: If I had been correctly classified, would I have netted more income? I calculated that my earnings were usually comparable to what I would earn at $16-$18 an hour. I took my weekly pay, subtracted all my expenses including what the employer share of taxes would be, and divided by the hours I worked. All the hours of overtime were never compensated at time and a half though.</p><p></p><p>Then I thought about whether I wanted to wait another 3-4 years for a trial to take place, then if we won, for an appeal to happen, then more time while damages were determined, then an appeal on that issue. </p><p></p><p>I think that the lawyers ignored the ERISA claims for benefits we should have had since other fedex drivers doing the same thing got benefits like some retirement, 401k, paid holidays, vacations, etc. But those are federal claims, and I know that these settlements are based on state claims. I guess those erisa claims are gone for good.</p><p></p><p>Am I happy about the settlement? No, even though it kind of a windfall. I would never have taken the job had I known fedex would violate the whole concept of being an IC by demanding that I work whatever hours they demanded, and interpret the contract in terms most beneficial to them. I had a pretty sweet IC job working 4 days a week making about the same, and I was promised that I could work as little as I wanted as long as I delivered my one zip code, where I lived. Working part time right around my home was why I took the job.</p><p></p><p>For those whoare covered for all the years included in the lawsuit, even a smaller settlement can add up to a lot. I was only covered for 3 years and have been waiting ten years. I could be literally dead if it went to trial by the time it was over. But with the settlement, I can refinance my mortgage and save another nearly $100 a month, qualify for some programs to update my house and save another $50 a month on energy costs, and make my home more valuable. I can pay off the balance on my car, and save another $20 a month in interest I am paying. </p><p></p><p>There is a lot to weigh in deciding whether to object to the settlement. Based on the state laws, time frame, and benefits of a bird in the hand now, and maybe more hiding off in the bushes years from now, plus the fact that I'm hungry for a bird now, it was probably only a 55/45 decision not to object.</p></blockquote><p></p>
[QUOTE="dmac1, post: 2393616, member: 60252"] If you are in one of the states where settlement covers, it may actually be a good deal, depending on your states laws that control what an employer can ask employees to pay for. The business support package is almost universally going to be something an employer should pay, as is worker's comp if required by your state. Our biggest expense as fedex drivers was the vehicle expenses, and in 4 of the 5 states I've worked in, employers can require that employees use their own vehicle without direct compensation explicitly spelled out. Since you signed a contract, you were told beforehand that your vehicle compensation was included in your pay. So fuel, maintenance, and vehicle payments would not be reimbursed as part of a settlement if it went to trial. Some things are just a matter of law, and fedex would fight tooth and nail to prevent any and every cent of any claim made in court. A settlement is a sure thing, and the only other option is a courtroom trial, and there is no way to know if we would even win on the merits of the employment status, let alone reimbursement of expenses, since we all knew ahead of time what expenses we were paying. IN some of the 20 covered states. the offer may actually be better than what could ever be expected in a trial, and in some it would be worse. In Oregon, I think it was almost fair. My biggest complaint is that without a trial, fedex faces no penalty for the years of mis-classification. The statute of limitation has passed for most of those years for the states themselves to pursue criminal penalties or even tax penalties. I had thought about objecting myself until I thought about it like this: If I had been correctly classified, would I have netted more income? I calculated that my earnings were usually comparable to what I would earn at $16-$18 an hour. I took my weekly pay, subtracted all my expenses including what the employer share of taxes would be, and divided by the hours I worked. All the hours of overtime were never compensated at time and a half though. Then I thought about whether I wanted to wait another 3-4 years for a trial to take place, then if we won, for an appeal to happen, then more time while damages were determined, then an appeal on that issue. I think that the lawyers ignored the ERISA claims for benefits we should have had since other fedex drivers doing the same thing got benefits like some retirement, 401k, paid holidays, vacations, etc. But those are federal claims, and I know that these settlements are based on state claims. I guess those erisa claims are gone for good. Am I happy about the settlement? No, even though it kind of a windfall. I would never have taken the job had I known fedex would violate the whole concept of being an IC by demanding that I work whatever hours they demanded, and interpret the contract in terms most beneficial to them. I had a pretty sweet IC job working 4 days a week making about the same, and I was promised that I could work as little as I wanted as long as I delivered my one zip code, where I lived. Working part time right around my home was why I took the job. For those whoare covered for all the years included in the lawsuit, even a smaller settlement can add up to a lot. I was only covered for 3 years and have been waiting ten years. I could be literally dead if it went to trial by the time it was over. But with the settlement, I can refinance my mortgage and save another nearly $100 a month, qualify for some programs to update my house and save another $50 a month on energy costs, and make my home more valuable. I can pay off the balance on my car, and save another $20 a month in interest I am paying. There is a lot to weigh in deciding whether to object to the settlement. Based on the state laws, time frame, and benefits of a bird in the hand now, and maybe more hiding off in the bushes years from now, plus the fact that I'm hungry for a bird now, it was probably only a 55/45 decision not to object. [/QUOTE]
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