Thursday, August 28, 2014
9th Circuit Appeals Court: FedEx Ground drivers are employees, not contractors
On Wednesday the 9th U.S. Circuit Court of Appeals ruled that FedEx Ground drivers in California and Oregon are employees — not independent contractors — and will be allowed to pursue claims of unpaid wages and benefits under state and federal labor laws.
FedEx said on Wednesday that it would challenge the ruling.
The 3-judge appeals court panel reversed a lower court's ruling, allowing FedEx Ground drivers to move forward with their lawsuits. It also paves the way for those who have filed similar claims against FedEx in approximately 40 states.
"We fundamentally disagree with these rulings, which run counter to more than 100 state and federal findings ... upholding our contractor relationships with thousands of independent businesses," said Cary Blancett, FedEx Ground senior vice president and general counsel in a statement.
The appeals court noted in its decision that although the FedEx operating agreement states that its drivers are independent contractors, the drivers wear FedEx uniforms, drive company-approved vehicles and are told by FedEx what packages to deliver and where and when to deliver them.
For more of the Reuters story: reuters.com
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