Freedom Newspapers, Inc. Settled Suit For Up To 42 Million

By David Diaz

A lawsuit closely watched by hundreds of thousands of American newspaper delivery professionals, and involving the flagship newspaper of Freedom Newspapers, Inc., owners of the McAllen Monitor, Valley Morning Star, and Brownsville Herald, was recently settled for up to $42 million.

The lawsuit, originally filed on July 7, 2003, is styled as Gonzᬥz v. Freedom Communications, Inc., 03CC0756. It involves 5,000 current and former carriers for The Register who worked anytime from July 7, 1999 through June 2000.

The settlement was reached with The Orange County Register, located in Santa Clara, California, which is the premier newspaper in Freedom Communications, Inc.'s media empire.

The legal dispute involved the common practice of the majority of the nation's newspapers, which classify newspaper delivery workers – also known as carriers – as independent contractors, freeing the publications from providing financial and legal benefits that most American workers take for granted.

Classifying carriers as independent contractors also shields the newspaper industry from paying payroll taxes, unemployment taxes, and providing workers compensation insurance.

According to the Newspaper Association of American, newspapers in the U.S. represent a $55 billion industry.

Reader Comments

Be the first to comment!

CURRENT ARTICLES

• Aeromexico's Premier Lounge at Cancun International Airport Undergoes Renovation
• FEBRUARY MANIC MONDAY
• Leading researchers, environment officials network at UTPA conference on subtropical biology
• Columbia Caucus Co-Chairs Meet With Colombian Labor Minister Pardo
• Tax Tips For Small Businesses Workshop

• Exclusive
• The BIG Story
• Anecdote
• Super Moms
• Faux Pas
• Real Estate Changing Hands
• Couples in Business
• Moving Up
• Maquila News