Court Finds Workforce Of FedEx Ground Drivers Are Employees, Not Independent Contractors
The Ninth Circuit Court of Appeal ruled that a class of 2,300 individuals working for FedEx Ground was misclassified as independent contractors instead of employees. As a result, FedEx may owe its workforce of drivers hundreds of millions of dollars for shifting to them the costs of such things as the FedEx branded trucks, FedEx branded uniforms, and FedEx scanners, as well as missed meal and rest period pay, overtime compensation, and penalties. The case, known as Alexander v. FedEx Ground, covers employees in California from 2000 - 2007.
Judge William A. Fletcher’s majority opinion stated, "We hold that plaintiffs are employees as a matter of law under California’s right-to-control test."
The court’s finding in Alexander, that drivers in California are covered by California’s workplace protection statutes, not only impacts one of FedEx Ground’s largest workforces but could influence the outcome in over two dozen cases nationwide in which FedEx Ground drivers are challenging the legality of their independent contractor classification.
Millions of packages are delivered every day across the state under the control, direction, and supervision of FedEx Ground. In addition, many trucking companies have been operating under a similar model in which they classify their drivers as independent contractors.