By looking at the uniforms and the trucks and scanners and just about everything else associated with any FedEx delivery driver, it’s more than reasonable that one would naturally assume they’re part of a massive payroll consisting of tens of thousands of employees for the Tennessee-based corporation. FedEx, however, would tell you that assumption is wrong. Instead, the company has a lengthy history of using independent contractors with dedicated routes to deliver its packages around the country.
Outfitted with FedEx logos, uniforms, and operating systems, it’s easy to see why a layperson might confuse the independent contractors for employees, and now courts around the country are beginning to agree. Fueled primarily by a string of class action labor lawsuits brought by FedEx drivers, state and federal courts have been thrust into deciding whether those drivers can proceed on claims reserved for employee-employer relationships. Last month, a pair of decisions from the Ninth Circuit appeals court found that, at least in California and Oregon, those drivers are actually employees of FedEx.
Spurred by claims for unpaid overtime and employment expenses as well as Family and Medical Leave Act violations, among other things, the first hurdle for the hundreds of drivers represented by the class action was to prove themselves eligible to recover on those bases. Doing so meant demonstrating that their arrangement with FedEx fell under the purview of employment. In a previous blog post, we discussed some of the basics of what distinguishes independent contractor status, but the Ninth Circuit went into great depth as it picked apart the many factors that demonstrated how little “independence” these drivers actually have.