Court finds FedEx drivers are employees, not independent contractors

[Yo_Mama_Been_Loggin]

Source: Sacramento Business Journal

A federal appeals court ruled Wednesday that 2,300 drivers working for FedEx Corp. in California were misclassified as independent contractors instead of employees.

As a result, the company may owe its drivers hundreds of millions of dollars for allegedly illegally shifting costs to them for FedEx branded trucks, uniforms and scanners, as well as come up with back pay for missed meal- and rest-periods, overtime compensation and penalties.

A three-judge panel of the U.S. Court of Appeals for the Ninth District ruled that FedEx drivers were employees “as a matter of law under California’s right-to-control‘ test” and “FedEx’s labeling of the drivers as ‘independent contractors’ in its operating agreement did not conclusively make them so.”

The case, known as Alexander v. FedEx, covers employees in California between 2000 and 2007. This is one of three class actions covered by the ruling that also affects FedEx drivers in Oregon.


Read more: http://www.bizjournals.com/sacramento/news/2014/08/27/court-finds-fedex-drivers-are-employees.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+industry_14+(Industry+Legal+Services

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Calling employees "independent contractors" is another way many companies try to screw their workers over.

[Historic NY]

1. I know a few guys that were stuck in that classification...

with Fed Ex...hopefully the decisions will spread to other states too. They were treated worse than hired help.

[Ikonoklast]

22. Yep. You can beat a rented mule easier than one you own.

FedEx has 'contractors' who are employees in everything but name.

[IDemo]

2. The same situation I have found myself in

I've been doing work for a tech startup for several months as an independent contractor, sans contract. It's 9 to 5, Monday through Friday, no overtime or holiday pay. It fits every standard from the IRS guidelines for full-time W2 work versus independent contracting - all work is done at the employer's premises and under their direction, using their tools and supplies, etc.

In different times, I'd probably be able to locate better circumstances. Things are not good at my age, though.

[Demeter]

5. Have you considered suing them, and retiring on the proceeds?

[IDemo]

7. No

The "CEO" has to shuffle funds from personal savings to pay me every two weeks. I don't think there are many proceeds currently to be had. Plus, I really think the product stands a good chance of making it. They have partnered with an established business which has already gained some sales. I'd like to think there may be a future, assuming another Black Friday isn't imminent or another player doesn't scoop the market.

That said, yes, there will be some corrections coming my way if things don't pan out.

[Hoyt]

27. Sometimes the smart thing is to suck it up, especially if the amount they pay is pretty

good considering things. As long as I'm not having to shoulder a lot of personal expenses, contracted work is not bad.

As much as we hate not having a secure, full-time job, many of use will work that way in the future, perhaps for several "clients" at the same time to make a full-time job. That's why Obamacare is so important.

Good luck.

Just for the record -- I do not support what FedEx did to these drivers.

[Fortinbras Armstrong]

14. I once took a computer systems administrator assignment that was supposed to last a month

So I did it as an independent contractor. I wound up being there over a year, and when I got a chance to take a W2 job, I took it. My boss at the contracting company asked why I was leaving, and I told him that I wanted things like benefits and holiday pay. He told me that they would be prepared to make me a W2 employee if I stayed, and I replied "When it was obvious that I was going to be there more than a single month, why didn't you make that offer then?"

Now that I'm in my mid-60s, I would take anything I might be offered.

[rocktivity]

3. CUE THE VONAGE THEME!

Drivers are their mother's milk -- are they THAT desperate not to pay them?


rocktivity

[Demeter]

6. Welcome to modern US business practices vis-a-vis labor

Don't you know you are supposed to pay your employer for the privilege of working for him?

[Demeter]

4. Yup, yup, yup

One in a series of scams: "independent contractor" is right up there with "lack of skilled workers" and "jobs Americans will not do".

[freshwest]

8. Glad to hear this. Will help more than those affected there, too!

[candelista]

9. Fedex drivers are like British miners 300 years ago.

The miners paid the mine owners for the privilege of mining ore, and got paid by the ton. Piece work. This model could be extended to any kind of work, from waiting on tables to insurance claims adjusting. Thanks to this ruling, at least we won't have to buy our picks and shovels from the company store.

[CBGLuthier]

17. Or american miners 60 years ago.

The company store and being paid in scrip lasted until the 1950's in this country.

[Sanity Claws]

18. Pennsylvania miners were treated the same in late 19th Century

I believe it extended into the early 20th Century.

[Spitfire of ATJ]

10. Betcha some of the drivers listening to RW hate radio think this ruling is a bad thing for them.

[SoapBox]

13. LOL...oh so true.

[DAMANgoldberg]

11. This is common in trucking...

I worked for 2 companies, one out of Illinois and the other out of South Carolina, that did the "Independent Contractor-1099" thing, but yet had Forced Dispatch, which doesn't give you the choice for load planning purposes. As a company driver, you are under Forced Dispatch virtually anywhere, including the 5 Boroughs, New York City, and trust me, you don't want to drive in NYC with a tractor and a 53' trailer. Most roads and loading areas weren't designed for these length trucks, never mind the $60+ to cross the George Washington bridge into NYC, the only major crossing from North Jersey available to Large Combination Vehicles.

Since this happened to me 5 and 6 years ago, the statute of limitations applies and or lack of $$ for an attorney to take this case either here or in the states mentioned. These companies also are in hot water for numerous DOT/FMCSA (Federal Motor Carrier Safety Administration) violations like log book, weight, and hazmat issues. Karma will catch up with them soon enough.

[SunSeeker]

12. FedEx should be ashamed.

But I am sure they're not. Wouldn't be surprised if they appealed this to the Supreme Court.

[Sunlei]

15. should do the same for the Sunday Amazon delivery using branded Post Office trucks.

[Dustlawyer]

16. It's part of the REAL class warfare going on! This is why unions are needed.

When greedy CEO's are allowed to do what they want to their labor to squeeze even more out of them, you need a union!

[father founding]

19. Personhood

Classify FEDex as an independent contractor so it wont be classified as a Person. Make Fed an ex. Won't be missed.

[csziggy]

20. This dates back to when FedEx acquired RPS

RPS drivers were independent contractors - RPS became FedEx Ground and FedEx continued that setup. Until then FedEx didn't have a ground shipping service, just their air express.

FedEx Express, the original air express service, used FedEx employees for drivers. The drivers who were working for the Express section disliked the Ground service drivers when the companies combined because they didn't think the former RPS contract drivers were up to the standards FedEx had set for their drivers previously. In addition, the Express drivers were worried FedEx would downgrade their jobs to contractor positions and they would lose pay and benefits they had fought for over the years.

I am not sure what the status of the FedEx Express drives is now. The information above is from talks I had with FedEx Express drivers years ago.

[Calista241]

21. Lots of employees would rather be contractors.

If benefits aren't a concern, it's a good way to lower your tax rate.

On a side note, Virtually everyone my company employs in Europe is a contractor also. They have essentially formed their own little corporation, and technically we've contracted their corporation instead of hiring them to do the work they're assigned. This is especially true in France where it's basically impossible to fire someone.

It's a bitch to do the paperwork, but they save 30-40% of their take home pay a year. I'm not saying it's the right thing to do, but it is the way things work currently.

[dbackjon]

25. At least in the US

You pay more as an independent contractor in taxes

[librechik]

23. Yay! A BIG Strike against "contract worker" atrocities!

I've been victimized too many times by that scam.

[dembotoz]

24. worked for a company that was told its contractors were employees

bit of a tax mess first year but employee was better

[Thinkingabout]

26. Some companies claim contractors instead of employees to avoid paying FICA, Medicare, FUTA

And SUTA taxes. From all of the information I read if you are under their supervision you are an employee.

[indepat]

28. How do you like dem apples, Ranger Smith?

[indepat]

29. A rose by any other name smells as sweet. Crap by any other name, Ranger Smith, still doesn't meet

the smell test.