FedEx $8.5M Wage Suit Deal Targets Security Check Time at N.J. Warehouses

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Breakdown of the $8.5 Million Fund

From the total settlement:

  • $2.8 million would go toward attorney fees.

  • $87,500 is earmarked for litigation costs.

  • Taggart would receive a $15,000 service award as the named plaintiff.

  • An estimated $279,000 would cover settlement administration expenses.

Taggart’s counsel, who say they have litigated similar wage cases nationwide for decades, described the outcome as reasonable given the uncertainty of trial and the potential for prolonged appeals.

The deal was reached last June following a day of mediation, according to the court brief.

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Allegations Centered on “Off-the-Clock” Time

Taggart filed suit in July 2023, alleging that FedEx violated New Jersey wage and hour laws by failing to pay workers for time spent waiting for and undergoing mandatory security screenings, walking to and from those checkpoints, and waiting to clock in and out.

The lawsuit framed the issue as a matter of principle: when does the workday truly begin? At the conveyor belt — or at the security gate?

FedEx, for its part, maintains it did nothing unlawful.

“FedEx is committed to complying with all wage and hour laws applying to our operations,” spokesperson Heather Wilson said Thursday. “While we continue to deny any wrongdoing or violation of the law with respect to the allegations in this lawsuit, we have reached an agreement to resolve this case.”

A representative for Taggart did not immediately respond to requests for comment.