Wage Watch: FedEx endures another legal blow - Fortune
FedEx loses again in battle over driver status
The Supreme Court of Kansas ruled late last week that FedEx had illegally classified truck drivers as independent contractors instead of as employees, notching a victory for the class of 479 workers who are seeking to recoup retroactive expenses and costs in addition to overtime pay they were prohibited from collecting under the contractor arrangement.
The decision in favor of the drivers is just the latest blow to the model long employed by the shipping company, which requires contracted workers to pay for uniforms and truck maintenance out of their own pockets. Last week, in assessing the status of FedEx drivers seeking to join a union in Connecticut, the National Labor Relations Board also found that the drivers are employees. The Ninth Circuit Court of Appeals in Portland, Ore. made the same determination in August, a ruling that ended FedEx’s long winning streak in cases challenging its independent contractor structure.
FedEx loses again in battle over driver status
The Supreme Court of Kansas ruled late last week that FedEx had illegally classified truck drivers as independent contractors instead of as employees, notching a victory for the class of 479 workers who are seeking to recoup retroactive expenses and costs in addition to overtime pay they were prohibited from collecting under the contractor arrangement.
The decision in favor of the drivers is just the latest blow to the model long employed by the shipping company, which requires contracted workers to pay for uniforms and truck maintenance out of their own pockets. Last week, in assessing the status of FedEx drivers seeking to join a union in Connecticut, the National Labor Relations Board also found that the drivers are employees. The Ninth Circuit Court of Appeals in Portland, Ore. made the same determination in August, a ruling that ended FedEx’s long winning streak in cases challenging its independent contractor structure.
