FedEx Lawsuit

Part of the fallout from the Fedex employee v. independent contractor controversy has reached the state government level, as published in a story last summer in the Pittsburgh Post-Gazette.  The article details the collection action from the California Employment Development Department, and states that the basis for this collection was a finding that Fedex had “misclassified” its drivers as independent contractors as opposed to employees.

As a result, the EDD assessed an amount of $7.8 million in back taxes owed, including payments for unemployment insurance, disability insurance and employment taxes.  Fedex has appealed this decision, and no outcome has yet been reached.  The assessment did not become public record until Fedex filed this appeal.

This is just another piece of a growing body of evidence that Fedex faces potentially significant liability for this classification of its drivers.  If you feel that you were wronged by Fedex as a result of being classified as an independent contractor, contact the Fedex overtime attorneys at Pulaski & Middleman to schedule a free initial consultation.