Employee or Independent Contractor?

California delivery workers, Ryder propose $5M deal to settle misclassification suit

From HRDive, Ryan Golden reports on a settlement between Ryder and a group of delivery workers in California resolving claims that the workers were misclassified as independent contractors. Ryan writes:

  • A group of California delivery workers contracted to provide services to either MXD Group or Ryder, or both, have asked a federal judge to sign off on a $5 million settlement to resolve misclassification claims brought against the companies(Kimbo v. MXD Group Inc., et al, No. 2:19-cv-00166 (E.D. Calif. Aug. 3, 2020)).
  • The class action involved more than 300 “Motor Carriers,” who contracted directly with the companies and more than 600 “non-carriers” authorized to assist the Motor Carriers but who did not contract directly with the companies. The workers’ complaint alleged that MXD Group and Ryder denied them employment rights and benefits by misclassifying them as independent contractors rather than employees.
  • The $5 million deal includes $3.4 million for class members and a $100,000 claims compensation fund. A Ryder spokesperson told HR Dive that the company does not comment on pending litigation.

Read the full story at California delivery workers, Ryder propose $5M deal to settle misclassification suit | HR Dive

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