Massachusetts drivers who delivered Lowe’s orders through RXO Last Mile Inc. during the decade-long period from July 20, 2015, to Aug. 12, 2025 are at the center of a $2.25 million proposed class action settlement. The case focuses on a common “last-mile” delivery model in which drivers are often treated as independent contractors, even though the work can look and function like traditional employment—scheduled routes, retailer-driven standards, and limited control over how deliveries are performed. Under Massachusetts wage-and-hour rules, that distinction matters because it affects whether workers must be reimbursed for business expenses, protected from certain paycheck deductions, and eligible for benefits such as earned sick time. The lawsuit (Gonzalez v. RXO Last Mile Inc.) was filed because drivers alleged they were misclassified as contractors, which allegedly enabled improper pay deductions and the denial of benefits required for employees under Massachusetts law; RXO denies wrongdoing but agreed to settle to avoid litigation risk and cost. If approved, the settlement will pay eligible drivers on a pro rata basis tied to the number of deliveries, after deductions for attorneys’ fees, administration costs, and service awards, with claims due Dec. 8, 2025 and a fairness hearing set for Jan. 27, 2026. Beyond individual payments, the case is significant because Massachusetts applies one of the strictest worker-classification standards (the “ABC test”), placing the burden on companies to show a worker is truly independent—an especially high bar in delivery and logistics—mirroring a broader wave of misclassification disputes in trucking, courier, and gig-adjacent work where businesses face scrutiny over payroll practices, expense shifting, and benefit avoidance under state wage statutes and earned sick time laws.