To settle this case, Prime has agreed to pay a total of up to $28,000,000.00 (the “Settlement Fund”), inclusive of all alleged unpaid wages, liquidated damages, penalties, interest, costs, and attorneys’ fees.
If the Court approves the settlement, you are eligible to receive a portion of the Settlement Fund, after payment of attorneys’ fees and costs and Service Awards to the Class Representatives. If the Court approves the settlement and you do nothing, you shall receive a minimum payment of $100.00, less applicable tax withholdings, in exchange for releasing your claims (See Section 6). If the Court approves the settlement and you file a Claim/Consent to Join Form, you will be entitled to receive an additional amount. The parties have endeavored to divide the Settlement Fund in a fair way. The Settlement Fund will be allocated in the following ways:
- Orientation Class Fund: Individual allocations of this fund will be based on the type of training or orientation you attended and the location where you attended it.
- B/C Seat Class Fund: Individual allocations of this fund will be based on: the miles driven in B or C seat status, compared to the gross earnings during that time.
- A Seat Class Fund: Individual allocations of this fund will be based on: the miles driven in A seat status as an employee driver (also known as “company driver”), compared to the gross earnings during that time.
- Independent Contractor Class Fund: Individual allocations of this fund will be based on: the miles driven in A seat status as an independent contractor, compared to 65% of the gross revenues earned during that time.
Additionally, individuals who have already received monies as part of another class action settlement in California against New Prime, Inc. will receive a 50% share from this settlement. Under these formulas, if the settlement is approved by the Court and you join the settlement, you will receive a settlement payment no less than the estimated gross amount listed in the Notice sent to you. You may also be eligible to be paid additional amounts from the settlement depending on how many individuals submit forms to participate in the settlement.
One-half of each Settlement Class Member’s settlement payment is considered wages and shall be subject to the withholding of all applicable local, state, and federal taxes, and reported on an IRS Form W-2. The remaining one-half of the settlement payment is considered compensation for interest, penalties and liquidated damages, and will not be subject to payroll withholdings, and will be reported on an IRS Form 1099. Please consult with your accountant or other tax advisor regarding the tax consequences of the settlement, including the non-monetary relief provided pursuant to the settlement, which is described below.
In addition to the monetary relief above, as a part of the settlement, if approved, Prime has agreed (1) to release entitlement to and not pursue any collection efforts relating to all monies purportedly owed to Prime by Class Members who either currently or at the time of their departure from Prime were in orientation, a B/C seat position, or an A seat company position; (2) to release entitlement to and not pursue any collection efforts related to all monies purportedly owed to Prime by Class Members who file a Claim/Consent to Join form and who either currently or at the time of their departure from Prime were in an independent contractor driving position (with the exception of certain independent contractors who may have destroyed, damaged or stolen Prime property); (3) to use best efforts to request that the national credit reporting agencies (Experian, Equifax and TranUnion) delete any reporting of drivers’ accounts with Prime in connection with any monies released as described above; and (4) upon a driver’s request to HireRight, provide a timely letter to HireRight with a copy to the requesting driver that any defaults owing to Prime and/or related entities have been rescinded by mutual agreement. For more information about this additional relief and the extent to which it applies to you, please visit the FAQ page or contact the Settlement Administrator (contact information in Section 10, below).