FedEx Agrees to $30.8 Million Wage Settlement in Washington Class Action

FedEx has agreed to a proposed $30.8 million settlement of a Washington class action alleging that Federal Express Corporation failed to provide or properly pay for meal and rest breaks, altered or rounded time records in ways that reduced wages, and unlawfully restricted some workers from holding additional jobs.

The plaintiffs asked the U.S. District Court for the Western District of Washington for preliminary approval on October 7, 2026. As of October 15, 2026, no approval order has been identified. The proposed deal would divide the money among three groups of workers: hourly employees with wage claims and two groups of employees challenging FedEx’s outside-employment restrictions. Payment amounts and eligibility rules remain subject to court approval and the final settlement terms.

The case is Gillyard v. Federal Express Corporation, No. 2:24-cv-01666. The plaintiffs are Steffon Gillyard and Jeffrey Woolley. FedEx denies wrongdoing and has agreed to resolve the disputed claims rather than continue litigating them.

FedEx Washington Wage Settlement Quick Facts

Detail	Information
Proposed settlement	$30.8 million
Defendant	Federal Express Corporation (FedEx)
Plaintiffs	Steffon Gillyard and Jeffrey Woolley
Court	U.S. District Court for the Western District of Washington
Case number	2:24-cv-01666
Judge	John H. Chun
Date filed	October 11, 2024
Main allegations	Meal and rest break violations, inaccurate time records, restrictions on outside employment
Proposed wage subclass	About 14,520 workers
Proposed payment structure	Three groups with different periods and allocation methods
Minimum fund (reported)	Not below $25 million, with no reversion of unused money to FedEx
Settlement status	Preliminary approval requested October 7, 2026; no approval order identified as of October 15
Claim form	None currently available; payments reportedly automatic for members who do not opt out
Claim or opt-out deadline	Not set
Final approval hearing	Not announced

What Is the FedEx Washington Class Action About?

The lawsuit challenges several employment practices the plaintiffs say affected workers in Washington. The proposed settlement resolves both wage-and-hour claims and claims about restrictions on workers’ ability to earn money from other jobs. These are separate legal issues combined in one deal.

None of the allegations has been proven in court.

FedEx Meal and Rest Break Claims Under Washington Law (WAC 296-126-092)

Under WAC 296-126-092, covered employees generally must receive a meal period of at least 30 minutes that begins between two and five hours after the start of a shift. They must also receive a paid rest period of at least 10 minutes for every four hours worked. If an employer requires a worker to stay on duty during a meal period, that time generally must be paid.

The lawsuit alleges FedEx did not provide legally compliant breaks or properly pay workers when required breaks were missed. How much is owed can depend on the wage rules that apply, the circumstances of each break and the worker’s records.

FedEx Time Record Claims Under the Washington Minimum Wage Act (RCW 49.46)

The plaintiffs allege FedEx edited or rounded time records so that non-exempt employees were paid for fewer hours than they worked. That can reduce regular wages and overtime.

Washington’s Minimum Wage Act, RCW Chapter 49.46, requires overtime at one and a half times the regular rate for hours over 40 in a workweek (RCW 49.46.130). Related wage-payment statutes allow employees to pursue unpaid wages and, in some circumstances, more:

• RCW 49.46.090 makes an employer liable for unpaid wages owed under the Act.
• RCW 49.48.030 allows a prevailing employee to recover attorney fees in an action for unpaid wages.
• RCW 49.52.050 and 49.52.070 address the willful withholding of wages and can allow double damages when the withholding is willful and intentional.

Not every instance of time rounding is unlawful. The questions are whether FedEx’s records accurately reflected time worked and whether workers received all the wages the law required. The proposed settlement does not decide either question.

FedEx Outside Job Restrictions Under RCW 49.62.070

The settlement also covers claims about an outside-employment policy tied to FedEx and its former affiliate, FedEx Ground. The challenged handbook language reportedly barred employees from working for competitors, suppliers or contractors, or for more than one FedEx company at the same time.

RCW 49.62.070, part of Washington’s noncompetition covenant law (RCW Chapter 49.62), generally prohibits an employer from restricting an employee who earns less than twice the applicable state minimum hourly wage from having another job, working as an independent contractor or being self-employed. The statute has exceptions, including certain safety concerns and reasonable, normal scheduling expectations. The lawsuit alleges the FedEx restrictions violated this law for covered workers.

For comparison, see Amazon Retail Wage and Hour 2M Settlement, Did You Work at Amazon Go or Amazon Fresh in Washington?, a separate Washington employee settlement involving alleged wage and break violations.

How Would the $30.8 Million FedEx Settlement Be Divided?

The figures below come from public reporting on the October 7 settlement request. They are proposed allocations, not guaranteed payments.

Proposed group	Approximate size	Proposed allocation	Period
FedEx wage subclass	14,520 workers	$12.8 million	August 16, 2021 – August 1, 2026
Earlier FedEx moonlighting subclass	5,444 workers	544,400(100 per member before deductions)	January 1, 2020 – August 15, 2021
Later FedEx moonlighting subclass	17,474 workers	About 17.5million(1,000 per member before deductions)	August 16, 2021 – April 22, 2026

The wage subclass uses an individualized formula, while the two moonlighting subclasses use flat per-member amounts. Together the reported allocations add up to about $30.8 million.

The proposed agreement also reportedly provides that the settlement fund cannot fall below $25 million even if workers opt out, and that no unused money reverts to FedEx. Attorneys’ fees, administration costs and service awards are also addressed in the proposed terms. These are proposed provisions, not a court-approved payout schedule.

Who May Qualify for the FedEx Washington Settlement?

Eligibility depends on which proposed group applies. Working for FedEx does not by itself make someone eligible.

FedEx Wage Subclass: Hourly and Non-Exempt Employees in Washington

This group covers an estimated 14,520 people who worked in hourly or other non-exempt positions for FedEx in Washington between August 16, 2021 and August 1, 2026. The proposed $12.8 million would be distributed using employment and pay information such as weeks worked, pay and hours, so payments would not be equal.

Earlier FedEx Moonlighting Subclass: January 1, 2020 – August 15, 2021

This group reportedly includes 5,444 workers, with a proposed $544,400 allocation, or $100 per member before deductions.

Later FedEx Moonlighting Subclass: August 16, 2021 – April 22, 2026

This group reportedly includes 17,474 workers, with a proposed allocation of about $17.5 million, or $1,000 per member before deductions. Reporting describes it as including non-exempt employees earning below twice the applicable minimum wage and certain exempt employees earning less than $100,000 a year.

The final settlement agreement controls the exact definitions, dates and exclusions. Workers should not rely on salary alone or assume every FedEx or FedEx Ground employee is included.

How Much Could a FedEx Employee Receive?

There is no single payment for everyone:

• Wage subclass: amounts would depend on individual employment and pay records, so they will vary.
• Moonlighting subclasses: $100 per member for the earlier group and $1,000 per member for the later group, before applicable deductions.

These are not guaranteed checks. Final amounts will depend on the approved terms, including fees, costs and any permitted adjustments. No settlement administrator has announced individual payment calculations.

Do FedEx Employees Need to File a Claim Form?

The proposed agreement reportedly provides for automatic payments, based on employment records, to class members who do not opt out. There is no active claim process right now. Preliminary approval has not been granted, and notice materials, objection and exclusion deadlines and a final approval hearing have not been announced.

If the court grants preliminary approval, eligible workers would normally receive notice explaining the class, payment terms and their options. The motion reportedly proposes a 45-day period to object or opt out after notice. Do not treat that as an active deadline; the real dates will come from the court’s order and the notice.

Be careful with third-party websites that ask for personal information or a fee to “register” you for this settlement. A legitimate class notice does not charge you to participate.

How Federal Court Reviews a Class Settlement Like the FedEx Deal

Because the case is in federal court, the settlement must follow Federal Rule of Civil Procedure 23(e). A class settlement cannot take effect without court approval. The judge must find that it is fair, reasonable and adequate, and class members have the right to object.

The Class Action Fairness Act’s notice provision, 28 U.S.C. § 1715, also generally requires notice of a proposed class settlement to the appropriate federal and state officials. Under that statute, a court generally cannot grant final approval earlier than 90 days after those officials are served. That is one reason these settlements often take months to reach payment.

Why Did FedEx Agree to Settle?

The parties turned to settlement after the case had been pending for nearly two years. A mediation on October 30, 2025 did not resolve the dispute. They kept negotiating and held a second, all-day mediation on July 22, 2026, then submitted the proposed $30.8 million resolution on October 7.

A settlement lets both sides resolve disputed claims without finishing litigation. It does not mean a court found the allegations true, and it is not necessarily an admission of liability.

FedEx Washington Settlement Timeline

Date	Event
October 11, 2024	Gillyard v. Federal Express Corporation filed in the Western District of Washington.
October 30, 2025	The parties attended mediation but did not settle.
November 10, 2025	The court set a schedule for briefing class certification.
June 22, 2026	The court continued the class certification briefing schedule during settlement discussions.
July 22, 2026	The parties held a second, all-day mediation, according to public reporting.
October 7, 2026	Plaintiffs asked the court to grant preliminary approval of the $30.8 million settlement.
October 15, 2026	No preliminary approval order or active claims deadline identified.

The publicly indexed federal docket shows the case and earlier scheduling orders. The latest settlement terms come from reporting on the October 7 filing, so check the live docket for anything entered after that date.

What Happens Next in Gillyard v. Federal Express Corporation?

1. Preliminary approval. Judge John H. Chun reviews the terms and decides whether to allow notice to go out.
2. Notice period. Class members are told about the deal and given time to object or opt out.
3. Final approval hearing. The court decides whether the settlement is fair, reasonable and adequate.
4. Payments. Payments go out under the approved agreement after final approval and any appeals are resolved.

If the court does not approve the agreement, the parties may have to revise it or return to litigating. No final approval date or payment date has been set.

Who Represents the FedEx Employees?

• Gregory A. Wolk and Hardeep S. Rekhi of Rekhi & Wolk P.S.
• Nicholas J. Ferraro of Ferraro Vega Employment Lawyers Inc.

FedEx is represented by counsel listed on the federal docket.

FedEx $30.8 Million Settlement FAQ

Is the FedEx $30.8 million settlement approved?

No. Plaintiffs asked the Western District of Washington for preliminary approval on October 7, 2026. As of October 15, no approval order has been identified.

Who could receive money from the FedEx settlement?

The proposal covers three groups: a wage subclass of about 14,520 workers, an earlier moonlighting subclass of 5,444 workers and a later moonlighting subclass of 17,474 workers. Each has different dates and eligibility requirements.

How much would FedEx settlement members receive?

The wage subclass allocation is $12.8 million, divided by work and pay records. The moonlighting groups have proposed amounts of $100 or $1,000 per member before deductions. No payment is guaranteed.

Do FedEx employees need to file a claim?

The proposed agreement reportedly provides automatic payments to members who do not opt out. No active claim process or deadline exists yet because court approval is pending.

What is the FedEx case number?

No. 2:24-cv-01666, in the U.S. District Court for the Western District of Washington.

Does the FedEx settlement cover delivery drivers who work for contractors?

Not automatically. The agreement covers defined groups of workers and specific Washington wage and outside-employment claims. Drivers employed by independent delivery contractors may have separate claims and are not necessarily included. For a separate case, see FedEx Delivery Drivers Overtime Lawsuit, Were You Affected?.

Did FedEx admit it violated Washington wage laws?

No. The proposed settlement would resolve disputed allegations. It is not a court finding of liability, and FedEx denies wrongdoing.

When would FedEx settlement payments be sent?

No payment date has been set. Timing depends on preliminary and final approval, the notice period, any objections or exclusions and administration of the settlement.

Sources Used in This Article

Court records

• Federal docket: Gillyard v. Federal Express Corporation, No. 2:24-cv-01666 (W.D. Wash.)
• June 22, 2026 scheduling order
• Plaintiffs’ motion for preliminary approval, filed October 7, 2026 (full motion and agreement available through PACER)

Statutes and rules

• WAC 296-126-092 (meal and rest periods)
• RCW Chapter 49.46 (Minimum Wage Act), including RCW 49.46.090 and 49.46.130
• RCW 49.48.030, RCW 49.52.050 and RCW 49.52.070 (wage payment and willful withholding)
• RCW 49.62.070 (restrictions on additional employment)
• Federal Rule of Civil Procedure 23(e) and 28 U.S.C. § 1715

Reporting

• Law360, “FedEx Inks $30M Deal In Wash. Breaks, Noncompete Suit” (October 8, 2026)

Disclaimer: This article is general legal information, not legal advice. I am not a practicing attorney. Settlement terms, eligibility rules and deadlines may change through court orders.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the federal court docket and scheduling order (Justia) and the official Washington WAC and RCW text; the settlement allocations come from public reporting on the October 7 motion, not yet the filed agreement, as of October 15, 2026. Last Updated: October 15, 2026.