The recent settlement creating a $228 million fund by Federal Express in a multistate class action brought in 2005 alleging that drivers were misclassified as independent contractors. However, the parties are encountering some reluctance from the court in obtaining court approval of the settled. This case is a good example that entering into a settlement

liability facing California employers, but the exposure for not appropriately reimbursing employees can be substantial. In
Code that the employee may not waive by agreement with an employer.

contrary to many of California’s Labor Code requirements. The rationale for this is pretty basic: if employees could waive the rights given to them under the Labor Code, every employer would simply require the employee to waive the