Court rules against FedEx in drivers' labor case

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A federal court has ruled that FedEx Corp. improperly classified about 2,300 drivers in California as independent contractors instead of employees.

The decision by a three-judge panel of the 9th U.S. Circuit Court of Appeals on Wednesday covered drivers who worked for FedEx between 2000 and 2007. Similar lawsuits were filed in about 40 states before 2009. The cases were consolidated for multidistrict litigation proceedings in the District Court for the Northern District of Indiana.

A lawyer for the drivers estimated that they could receive at least $250 million in back pay and damages if the ruling stands up.

The judges said that under California law, the drivers were employees because FedEx controlled how they did their work. They had to wear company uniforms, drive approved trucks, and follow other company procedures.

FedEx said it will appeal to the full appeals court in San Francisco. FedEx general counsel Cary Blancett said that other courts had upheld contract language with "thousands" of independent contractors.

The Memphis, Tennessee-based company said that since 2011, it has only contracted with incorporated businesses that treat drivers as their employees. It also said it will shift to new service agreements in California, Oregon, Washington and Nevada.

In their lawsuit, the drivers sought back pay for overtime, expenses, punitive damages and attorney costs. That would total more than $75,000 for each of the drivers in the original lawsuit, according to filings.


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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues