In the past 2-1/2 years, FedEx has suffered through some appellate court setbacks in the area of independent contractor misclassification, beginning with a decision by the U.S. Court of Appeals for the Ninth Circuit in San Francisco and ending with a decision by the Seventh Circuit in Chicago. Those decisions
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Further IC Misclassification Wounds: FedEx’s Settlement Payments Nearing $500 Million
FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of appellate court decisions that concluded that FedEx did not draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last Friday, an Oregon federal judge approved a…
$240 Million Settlement Closes Chapter on FedEx IC Misclassification Lawsuits
FedEx yesterday announced that it reached a settlement of its remaining independent contractor class action lawsuits in 20 states with its Ground Division drivers for $240 million, pending court approval. Coming on the heels of its $226 million dollar settlement in the California class action against it, FedEx will pay…
Seventh Circuit Adopts Kansas Supreme Court Decision that FedEx Ground Misclassified Its Drivers as Independent Contractors as a Matter of Law
Yesterday, as anticipated, the U.S. Court of Appeals for the Seventh Circuit adopted the decision of the Kansas Supreme Court that FedEx Ground drivers, as a matter of law, were employees and not independent contractors under the Kansas Wage Payment Act (KWPA). The Seventh Circuit had “certified” two questions to
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$228 Million: The Cost of Independent Contractor Misclassification for FedEx Ground in California
Yesterday, June 12, FedEx announced in papers filed with the SEC that its Ground Division “has reached an agreement in principle with [drivers] in the independent contractor litigation that is pending in …California [federal court] to settle the matter for $228 million.” The proposed agreement, which has not yet been…
FedEx Hit with Avalanche of Independent Contractor Misclassification Rulings
In the past week, the Supreme Court of Kansas and the National Labor Relations Board have issued lengthy, comprehensive opinions finding that FedEx misclassified its Home Delivery and Ground Division drivers as independent contractors as a matter of law. Those two decisions, which dealt with drivers in Kansas and Connecticut,…
Earthquake in the Independent Contractor Misclassification Field: Changed Landscape Following Serious Legal Blow to FedEx Ground by Federal Appellate Court
FedEx Ground has been at the epicenter of the crackdown on IC misclassification by government regulators, state legislators, and plaintiffs’ class action lawyers since 2007, when a California appellate court found single-route FedEx Ground delivery drivers to have been misclassified as independent contractors (ICs) instead of employees.[1] But in 2009[2]…
FedEx Ground Settles Drivers’ Independent Contractor Misclassification Case in Maine for $5.8 Million
141 drivers classified as independent contractors by FedEx Ground will receive $5.8 million in settlement of their misclassification lawsuit brought under federal and Maine wage and hour laws. The amount includes their class counsels’ legal fees of $1.9 million. Scovil v. FedEx Ground Package System, Inc., d/b/a FedEx Home Delivery…
Analysis and Takeaways: FedEx Ground Loses Massachusetts Independent Contractor Misclassification Lawsuit
On July 3, FedEx Ground drivers won summary judgment in their misclassification lawsuit brought against the global courier company under the Massachusetts Independent Contractor Act. No. 11-11094 (D. Mass. 7/3/13). Judge Richard G. Stearns of the U.S. District Court for the District of Massachusetts rejected all of FedEx Ground’s defenses,…
Independent Contractor Misclassification Ruling in Favor of FedEx Ground Confirms Critical Role of IC Agreements and Policies and Procedures in Class Action Litigation
Last month, the federal district court judge assigned to handle dozens of state law class action claims brought around the country against FedEx Ground by its drivers, who have claimed they are “employees” misclassified as independent contractors (ICs), issued a comprehensive ruling covering 42 of the of the remaining lawsuits. …