Los Angeles, CA: A $228 million settlement has been reached in an California wage and hour class action lawsuit pending against FedEx. The lawsuit alleged that by FedEx Ground drivers in California were intentionally misclassified as independent contractors instead of employees, thereby enabling the courier company to short the drivers' wages and benefits.
The lawsuit was brought on behalf of 2,300 drivers who worked for FedEx between 2000 and 2007. In its ruling the Ninth Circuit court of appeals stated that while the operating agreement allowed drivers to supply their own trucks and to pay for their own uniforms, the agreement also included specifications for the size and maintenance of those trucks and the condition of the uniforms. Taking that authority into account and weighing it against other facts, the court said the level of control FedEx exercised over its drivers made them employees.
The case is Dean Alexander et al. v. FedEx Ground Package System Inc., case number 3:05-cv-00038, in the U.S. District Court for the Northern District of California.
