Government Agencies Weighing in Against Fedex Ground

As the controversy between Fedex Ground and its delivery drivers continues to grow and swell, more and more government bodies are beginning to weigh in on the issue in the form of opinions and decisions. If there is a trend to be noted, it's that almost all of the major decisions regarding whether or not Fedex Ground drivers should have been classified as employees as opposed to independent contractors, that trend is that Fedex Ground is taking a beating. Below are brief explanations and descriptions of how two governmental bodies have treated this issue, and if you'd like to find out how your rights could be impacted by this issue, contact the Fedex overtime attorneys at The Firm today to schedule an initial consultation.

The Courts - Estrada v. Fedex Ground Package Sys. Inc., Cal. Ct. App., No. B189031, 8/13/07

In a lawsuit brought by two Fedex Ground drivers who were seeking damages to recover work-related expenses, the California Court of Appeals ruled that these drivers were in fact employees, despite the fact that they were classified as independent contractors and signed an agreement acknowledging their classification. One statement in the opinion is particularly telling, and this comes from Justice Miriam A. Vogel:

"the parties' label is not dispositive and will be ignored if their actual conduct establishes a different relationship."

The case was sent back to the trial court to determine the proper amount of damages and expenses to be reimbursed as well as to determine the amount of legal fees that Fedex Ground must assume.

The National Labor Relations Board (NLRB)

The NLRB is a governmental agency that oversees labor laws, unions and collective bargaining practices, among other issues. They are relevant here because several Fedex Ground shops have attempted to unionize, which is not allowed unless the workers are employees. In hearings before the NLRB, the board has consistently held that these drivers are employees as opposed to independent contractors, and as such, they have the right to unionize. In fact, six decisions in the Northeastern United States all sided with the drivers, and union elections have been held. This creates an obvious problem for Fedex Ground, as they had never classified these drivers as anything but independent contractors.

Overall, this is a situation that becomes more complicated by the day, so it seems. If you would like to gain an understanding of how your rights apply to this situation, you need to contact the Fedex overtime attorneys at The Firm today to schedule an initial consultation.