RXO Last Mile $2.25M Mass. Delivery Drivers Settlement

Drivers in Massachusetts who made deliveries to Lowe’s customers through RXO Last Mile Inc. between July 20, 2015, and Aug. 12, 2025, may be eligible to claim a cash payment from a class action settlement.

RXO Last Mile Inc. agreed to pay $2.25 million to settle a class action lawsuit alleging it misclassified certain delivery drivers as independent contractors rather than employees, resulting in improper pay deductions and denial of employment benefits under Massachusetts law.

Who can file a claim?

The class includes:

• All drivers who performed deliveries in Massachusetts on behalf of RXO to Lowe’s customers between July 20, 2015, and Aug. 12, 2025
• Drivers who did not sign contracts directly with RXO
• Drivers who were not classified as helpers (i.e., those who drove bit did not assist drivers)

Who is excluded from the class?

• Helpers (those who assisted drivers but did not drive)
• Drivers who signed contracts directly with RXO

How much can class members get?

Pro rata payment: The total settlement fund is $2,250,000. After deducting attorneys’ fees, service awards and settlement administration costs, the settlement administrator will distribute the remaining funds among eligible class members. The amount each class member receives depends on the number of valid claims submitted and the number of deliveries each driver made to Lowe’s customers in Massachusetts during the covered period.

The settlement administrator will distribute the net settlement fund proportionally based on each driver’s estimated damages, which it will calculate using delivery data RXO provides or estimates drivers submit on their claim forms. Drivers who made more deliveries may receive a larger share, while those with fewer deliveries will receive less.

How to claim a class action rebate

Class members can download, print and complete the PDF claim form (Page 19 of the settlement agreement) and mail, email or fax it to the settlement administrator. The online claim form is currently unavailable. The claim deadline is Dec. 8, 2025.

Settlement administrator's contact information: Gonzalez v. RXO Last Mile Inc., c/o Settlement Administrator, P.O. Box 26170, Santa Ana, CA 92799, fax: 714-824-8591, info@RXOLastMileSettlement.com

Payout options

The settlement administrator will mail checks to the addresses class members provide on the claim form.

$2.25 million settlement fund breakdown

The $2,225,000 settlement fund covers:

• Settlement administration costs: Up to $40,000
• Attorneys’ fees: Up to $750,000
• Attorneys' expenses: Up to $26,303
• Service awards to three lead plaintiffs: Up to $25,000 each ($75,000 total)
• Service awards to seven deponents: Up $2,500 each ($17,500 total)
• Payments to eligible class members: Remaining funds

Important dates

• Claim deadline: Dec. 8, 2025
• Opt-out deadline: Dec. 8, 2025
• Fairness hearing: Jan. 27, 2026

When is the RXO Last Mile settlement payout date?

The settlement administrator will distribute checks approximately 56 days after the court grants final approval and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged RXO Last Mile Inc. misclassified delivery drivers as independent contractors rather than employees in violation of Massachusetts law. The plaintiffs claimed this misclassification led to improper deductions from their pay and denial of employment benefits, such as vacation pay and sick time.

RXO denied all allegations but agreed to settle to avoid the cost, uncertainty and risks associated with continued litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement
4. Settlement FAQ