FedEx Lawsuit

When the government needs to determine whether or not someone is an employee or an independent contractor, there are several basic points that are examined.  The government is generally interested in providing this classification because of the tax implications that form the foundation of this label.  Below are a few examples of the elements of this analysis:

1. Is the worker told when to come to work and when to leave?

2. Is the worker given specific instructions on how to perform his or her duties?
3. Is the worker given specific instructions in regards to where to go during the workday?
4. Does the worker have to report to a specific location every day he or she works?
5. Is the worker subject to internal human resources policies and procedures?

Of course, there are other questions, but if the answer to the queries above are “yes,” then that person is generally considered an employee and not an independent contractor.  This is the central issue in the burgeoning controversy involving Fedex and its drivers, who have been classified as independent contractors, even though the answers to the questions above, when applied to these drivers, is generally “yes.” 

If you would like to gain an understanding of how your rights may be affected by this issue, contact a Fedex overtime attorney at Pulaski & Middleman for a free initial consultation.

For those of you who are wondering just what all the hubbub is about regarding the Fedex employee v. contractor issue, The New Standard, an independent, non-profit publication recently put out a report of the issues that are involved with this controversy.  This report appears to be quite objective, as The New Standard is akin to Consumer Reports, in that it does not accept advertiser money, and therefore appears to have no agenda regarding this story.

The article points out that one driver, Jerry Ferguson of

However, it turned out to be anything but the independence that

Work where and when he was told to by Fedex;

1. Had to wear an official company uniform;

2. Restrict the driving of his own trucks that were bearing the required Fedex logo.

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.

Yet another example of the problematic classification of Fedex drivers as independent contractors can be found from the news archives.  This story originally ran in the Boston Globe in early 2006, and it reported that Fedex drivers won the right to hold a secret ballot on whether or not to form a union.

The ability to hold this vote was a result of the National Labor Relations Board’s finding that Fedex drivers were employees and not independent contractors.  This ruling was necessary, because only employees of a company can unionize.  The decision was made by the NLRB’s

In relevant part, the statement from the NLRB details that:

“…although 23 drivers at the terminal signed contracts stating that they would operate as independent contractors, they should be considered employees under labor law because they must adhere to the company’s rules and regulations and do not exercise full control over work, compensation, training, or routes.”

Therefore, if you feel that your rights have been harmed as a result of this issue, contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule a free initial consultation. 

When looking for any information that could help us to understand what led so many drivers to get excited about working as independent contractors as Fedex drivers, we found an interesting source – Fedex’s own Web site.  Below is the text from their invitation to “apply” to be a Fedex driver:

Have you dreamed of running your own business? Do you prefer getting out and interacting with customers, rather than sitting at a desk all day? If the answer is “yes” becoming a P&D, Linehaul or Home Delivery Independent Contractor with FedEx Ground or FedEx Home Delivery may be ideal for you. Consider the advantages: excellent earning potential, the ability to grow your own business, and the chance to partner with the fastest growing transportation company in

As we’ve seen in earlier entries, actual drivers did not, in their opinion, generally get to experience the benefits that are described here.  If you are among them, please contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule a free initial consultation.