A $16.5 million wage-related class action settlement between XPO Logistics Inc. , a delivery
service company, and its drivers, obtained final approval from a judge in the Northern District of
California.
XPO provides delivery and basic installation services in California and throughout the U.S. for
retailers including Home Depot, Lowe’s Home Improvement, Macy’s, Ethan Allen, Pottery Barn,
and Kraftmaid. Delivery drivers based in California brought a class action against XPO in March
2016, alleging they were misclassified as independent contractors in violation of California wage
and work-related-expense laws, and federal Fair Labor Standards Act overtime requirements.
Over 800 class members will split $12.2 million of the total settlement fund, after various
deductions. Awards will be calculated based on the number of days worked for XPO, with each
individual getting about $66.77 per workday. The average individual award will be $14,775, and 19
class members will receive at least $100,000 each. Individuals who opted into the FLSA collective
action will also split $150,000 based on workdays. Judge William Orrick of the U.S. District Court for the Northern District of California granted final approval of the class and collective settlements Oct. 18, noting that the $16.5 million class amount represents 20% of the maximum verdict in the case and is “fair, adequate and reasonable given
the risks of continued litigation.”
Final class certification, attorneys’ fees and costs, the class representative awards, and charitable
awards were also approved in the Oct. 18 order.
Six class representatives will each receive $20,000 service awards. Class counsel will get $4
million in attorney fees and litigation expenses. Legal Aid at Work was designated as the
charitable beneficiary of any residual settlement funds.
Orrick also ruled that 21 individuals who performed installation work for XPO and had erroneously received a settlement notice, weren’t included in the settlement class or bound by the agreement
because their contracts were significantly different from the delivery drivers’ contracts.
Leonard Carder LLP represents the class and collective members.
Jackson Lewis PC and Pacific Employment Law LLP represent XPO Logistics Inc.
The case is Carter v. XPO Logistics, Inc. , 2019 BL 400284, N.D. Cal., 16-cv-01231-WHO, 10/18/
19.
Reproduced with permission. Published 10/21/19. Copyright 2020 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bloombergindustry.com>