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Court Rules FedEx Drivers Are Employees, Not Contractors

Court Rules FedEx Drivers Are Employees, Not Contractors

August 27, 2014 by Mark H. Wagner

In Alexander v. FedEx Ground Package System, Inc., the Court ruled that the FedEx drivers were employees. A group of individuals who drove delivery routes for FedEx Ground and FedEx Home in California sued wage/hour violations, alleging that they were employees, rather than independent contractors. The case was consolidated with cases from a number of other states for multidistrict litigation (MDL) proceedings. The MDL Court certified the expense reimbursement and unpaid wage claims, but not the FMLA claims. The parties then made cross-motions for summary judgment, asking the MDL Court to determine whether the drivers were employees or independent contractors as a matter of law. The MDL Court determined that the drivers were independent contractors as a matter of law in each state in which common-law agency principles govern employment status, including California. The Ninth Circuit reversed, holding that the plaintiffs were employees as a matter of California law. The court stated that because the company had the “control” over the drivers, in many aspects of how they appear and do their job, (detailed in the opinion), they were employees.

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