Freedom Communications Inc., the company that operates the Orange County Register, reached a multimillion-dollar settlement with the newspaper’s carriers after a long dispute over their employment status. The Irvine, Calif.-based newspaper will pay about $22 million to settle the class action lawsuit filed on behalf of more than 5,000 newspaper carriers, who are classified as independent contractors by the company. The lawsuit, filed in 2003, alleged that the classification was unfair because it denied them overtime pay and mileage and required them to pay fines out of pocket for late papers and other delivery problems. The settlement, which came in the middle of the trial, will not require the firm to reclassify its carriers as employees. Freedom Communication says it will pay any class members who filed claims.
Source: Los Angeles Times
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