FedEx workers are required to undergo mandatory screenings before and after shifts, which they haven’t been getting paid for, according to a class action lawsuit filed by FedEx factory workers in Middlesex County, New Jersey. The workers allege that the practice violates hourly wage laws, and FedEx just agreed to pay $8.5 million to settle the matter.
The law protects workers on the job, but the central issue in this lawsuit is when work actually starts — is it when employees arrive at the security gate, or is it later when the first package rolls down the conveyor belt? Here’s what you should know, and why it affects more than just FedEx workers.
The Lawsuit Claimed FedEx Didn’t Pay Employees for Time Spent in Security Checks
FexEx employee William Taggart claimed in the lawsuit that he and nearly 100,000 other hourly workers in New Jersey weren’t paid for the time they spent at FedEx before and after their shifts. The workers were required to undergo security screenings, which involved walking to and from the time clocks, waiting for, and undergoing security checks.
In the complaint, Taggart said that workers weren’t compensated for this time, even though the security procedures were required to work a shift and benefited FedEx. Instead, as hourly, non-exempt employees, they were paid only for 40 hours of work per week, which didn’t include the security check time.
Attorneys for the workers and FedEx signed the agreement on February 18, 2026. FedEx agreed to an $8.5 million settlement, which, according to court filings, will resolve the claims of approximately 97,795 workers who were employed at package handling centers throughout New Jersey. If it’s approved, about $5.3 million of the settlement fund will be distributed to class members.
Of course, a settlement does not mean that FedEx admits guilt. In fact, a spokesperson for FedEx said in a statement that the company denies any wrongdoing or violation of the law and is committed to complying with all wage and hour laws.
Under NJ Law, Courts Have Found That Security Time Must Be Paid
New Jersey and federal laws, such as the Fair Labor Standards Act, require employers to follow certain standards regarding fair wages and overtime pay. The lawsuit claimed FedEx violated the New Jersey State Wage and Hour Law (NJWHL), which sets minimum wage, overtime, and related pay standards for most workers in the state.
NJWHL is administered by the New Jersey Department of Labor and Workforce Development. Under NJWHL, employers must pay employees for all hours worked. That requirement includes payment for time spent in mandatory activities that happen before clocking in or after clocking out.
In previous cases, New Jersey courts have ruled that security screenings must be paid under the NJWHL. (Federal law is a bit more employer-friendly, and federal courts have held that security screenings were not compensable under the FLSA.)
It’s Not The First Time For FedEx
FedEx employs over 500,000 people worldwide. Like many large companies, they have been sued numerous times for a range of employment law issues. They were sued for race discrimination and retaliation, violation of the California Labor Code by failing to provide employees with rest and mail breaks, misclassification of delivery drivers as “independent contractors” instead of employees, failing to pay employees who took short-term military leave for 14 days or fewer, and even a 2020 case for requiring New Jersey package handlers to go through security screenings before clocking in and after clocking out — the same issue that was addressed in this case.
And all that litigation doesn’t even include the time they left Tom Hanks on a deserted island for four years with nothing but a volleyball to keep him company. It’s hard to believe that wasn’t even mentioned anywhere in the settlement agreement.
Related Resources
- Jeff Ruby Restaurant Group Serves $1.55 Million Settlement Over Wage Theft Claims (FindLaw's Courtside)
- FAQs: Wage and Hour Laws (FindLaw's Learn About the Law)
- What Is Wage Theft? When Can You Sue? (FindLaw's Law and Daily Life)
