FedEx Ground has settled a case with the Attorney General of Massachusetts for misclassifying its delivery drivers. FedEx Ground classifies its drivers as independent contractors, instead of employees, which results in substantial cost-savings to FedEx Ground because under such an arrangement its drivers bear FedEx Ground’s overhead costs, among other things.
On May 19, 2010, after nearly a six week trial, a New York jury awarded a record $250 million in punitive damages, the largest of its kind in a sexual discrimination case, to a class of female sales employees in the U.S. District Court for the Southern District of New York. Last week, the parties reached a settlement agreement of the plaintiffs’ sexual discrimination claims in the sum of $152 million.
On July 6, 2010, the United States Court of Appeals for the Second Circuit, which sits in New York City, ruled against Novartis Pharmaceuticals Corporation (“Novartis”) on claims brought by current and former pharmaceutical representatives for overtime pay. The claims were asserted under the federal Fair Labor Standards Act (“FLSA”) and state law, including New York’s Minimum Wage Act. The court’s decision affects sales representatives in New York, California and other states.