FedEx Corp. struck a deal to pay $228 million to settle independent contractor litigation that is pending in the United States District Court for the Northern District of California. The settlement is subject to court approval.

Plaintiffs in the case, Alexander v. FedEx Ground, alleged workers at FedEx Ground were classified as independent contractors but were in fact employees because of the extent of the company’s control over their activities.

“FedEx Ground faced a unique challenge in defending this case given the decision of the Ninth Circuit Court of Appeals last summer. This settlement resolves claims dating back to 2000 that concern a model FedEx Ground no longer operates,” said Christine Richards, executive VP and general counsel of FedEx Corp.

The Ninth Circuit Court of Appeal ruled last year that FedEx Ground misclassified a class of 2,300 drivers as independent contractors instead of employees from 2000 to 2007.

Transport Times reports Beth Ross, a California attorney who led counsel for the plaintiffs’ group, said the amount of the settlement appears to be the largest in recent memory in US employment cases. Ross noted that US Department of Labor collected a total of $264 million in 2013 in all employment cases pursued by the agency.

“It will absolutely be a precedent for other employment cases in the state,” Transport Times quoted Ross as saying.

FedEx still faces lawsuits over the independent contractor status in other jurisdictions.