FedEx Lawsuit

In a short but interesting item reported by the Indianapolis Business Journal, it seems that all of these lawsuits being filed against Fedex in reaction to its classification of delivery drivers as independent contractors as opposed to employees could cost the shipping giant big money.  In fact, the article estimates that the total could be somewhere around $630 million.

The basis for this cost analysis is the assumption that if these lawsuits prove to be successful, Fedex could be forced to buy 15,000 delivery trucks that the drivers had to purchase themselves in order to manage their routes.  The estimated cost of each truck is $45,000. 

“FedEx has been nipping at the heels of larger United Parcel Service, grabbing nearly 20 percent of the ground-delivery market, while UPS has shrunk to 70 percent from 82 percent over the past decade.

The Teamsters union, which represents UPS drivers, is behind the flurry of lawsuits, according to FedEx. It filed as evidence with the court copies of emails between the union and attorneys representing the independent drivers.”

If you have been harmed by this scenario, you need to contact the Fedex overtime attorneys at Pulaski & Middleman immediately to schedule a free initial consultation.