The California Court of Appeal has ruled that FedEx Ground drivers are company employees and notindependent contractors. The verdict in a long-running dispute is a blow to the small package
operator which claims its drivers are self-employed.The appeals court upheld the trial court’s original decision in December 2005, and determinedthat the FedEx Ground drivers were entitled to reimbursement for approximately $6 million inadditional expenses, bringing the total damages to about $11 million for 200 drivers, law companyLeonard Carder LLP said in a statement.
The Appeals Court stated: “… the work performed by the drivers is wholly integrated intoFedEx’s operation. The drivers look like FedEx employees, act like FedEx employees, are paid likeFedEx employees, and receive many employee benefits.”
Citing the trial court’s decision, the appellate court commented: “The essence of the trialcourt’s statement of decision is that if it looks like a duck, walks like a duck, swims like aduck, quacks like a duck, it is a duck.”
Lawyer Lynn Faris, who represented the drivers, said legal action in US federal courts wasalso intended to prove that FedEx Ground and Home Delivery drivers had been misclassified to reducecosts and avoid taxes.
FedEx has not commented publicly on the verdict.
