New York's attorney general says FedEx will pay $2 million to settle a lawsuit that several hundred drivers had been underpaid.

FedEx Ground Package System is to distribute the money under the deal reached in connection with the legal action that began eight years ago.

The state attorney general's office sought restitution for violations of New York Labor Law, including unpaid overtime and unlawful deductions from wages. The lawsuit alleged drivers had been unlawfully misclassified as independent contractors while they were, in fact, employees.

The drivers affected delivered packages for FedEx Ground and its division, FedEx Home Delivery.

Attorney General Barbara Underwood warned companies that they "cannot misclassify employees in order to dodge their legal obligations."

Qualifying drivers will be sent notices and then will be required to submit claim forms in order to receive payment from the settlement fund.

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