A $227 million settlement has been reached with more than 2,000 past and present FedEx workers in California who claimed the company misclassified them as independent contractors and then short-changed them on their wages and benefits.

The agreed upon payment, which must still be approved by the Ninth U.S. Circuit of Appeals in San Francisco, would end a long-running dispute by compensating FedEx drivers who picked up and delivered packages between 2000 and 2007.

A federal appeals court ruled in August that the drivers were employees, not contractors, and were therefore entitled to overtime and other benefits. Company officials contended that the drivers, who worked for a branch called FedEx Ground Package Systems, were independent contractors unprotected by California labor laws. A lower court initially agreed with FedEx, but the three judge appeals court panel overturned the ruling.

FedEx appealed the ruling, but agreed to settle the case Friday.

Drivers for UPS and the U.S. Postal Service, FedEx’s main competitors, are classified as employees.

Court rules FedEx Ground drivers are employees, not independent contractors

FedEx agrees to pay $227 million to short-changed workers