A large, multi-jurisdictional class-action employment case involving drivers for FedEx had 2 major rulings in 2014.
Tracing its origins to 2001, the case essentially boils down to classification – are drivers independent contractors or employees?
The drivers maintain they are employees, although the company has classified them as independent contractors. Being an independent contractor relieves the company from having to offer any benefits, or pay certain taxes. However, the drivers contend that since they had to purchase specific equipment and the company dictated routes and hours that they should be considered employees of the company and therefore entitled to benefits, overtime pay and so on.
This is the rationale behind a recent Kansas Supreme Court decision affirming that the drivers are employees.
The drivers also maintain they’ve suffered financial damages from being classified as independent contractors.