UPS Granted Green Light for $150,000 Driver Buyouts Settlement Talks

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A federal judge approved UPS's proposal to offer $150,000 voluntary buyouts to drivers alleged to have been misclassified. The decision clears the way for settlement negotiations covering thousands of current and former drivers' overtime and expense claims.

1. Judicial Approval

On February 21, a federal judge ruled UPS may proceed with offering $150,000 voluntary buyouts to drivers in a proposed class action alleging misclassification. The decision removed a preliminary injunction that had blocked UPS from initiating the buyout program pending litigation.

2. Settlement Scope and Next Steps

The approval opens settlement talks covering thousands of current and former drivers who claim unpaid overtime and expenses, with the buyouts designed to resolve individual claims. UPS and plaintiffs' counsel will now negotiate final terms, including eligibility criteria and distribution timelines.

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