The Class Action Lawsuit (UPDATED 9/29)

An anonymous commentor asked a question here about the "Class Action Lawsuit". I thought I'd post a little about that today because it also may be helpful to some who don't know about it. The site I mentioned in "A link to FedEx information for FedEx Employees" has a copy of the lawsuit in their documents section, but you may have to create a login to access this PDF file. Its a free site and they promise not sell your e-mail or send spam. I haven't gone through the site nearly enought, but its a good site to find information.

About the lawsuit. There were three FedEx Ground contractors in California - Estrada, Morgan and Roberts who filed the suit requesting that the judge find, in their favor, that they are "employees" of FedEx based on the nature of the contract. The judge picked through the "contract", which sounds identical to the Home Delivery contract, and ruled that two of the contractors were indeed employees. This was decided 7/26/04. They will go through another round of findings to determine the accounting but what it means is, FedEx will need to back pay these contractors for various things. It will be interesting to see what they will be responsible for.

The reason that he did not find in favor of the third contractor was that he was running more than one truck and they felt that multiple route contractors are indeed independent. They also excluded contractors that formed LLC's and Corporations, Temp Drivers, workers who are contracted by contractors and line-haul drivers.

I found it very interesting to read the document because the Judge really scrutinized the contract. I would recommend that anyone considering a route read it. I'm not sure where the ruling will go nationwide, but it does open the door for other people to file in their states since the precedent has now been set. The fedexaminer.com site did mention that there was a meeting at the filing attorney's office on Monday, September 20 for FHD contractors who qualify so it looks like they may be moving forward in California.

My boyfriend had formed an LLC, like many other contractors at his terminal and that may have been a mistake. He formed "after" the contract was signed, so he may have a shot. But, it is also something to consider if you are already a contractor who may be thinking of forming a company.

UPDATE
This is straight from the website of the law offices representing the Californian FHD Contractors. There you can find the press release as well as a copy of the ruling. I've contacted them to ask if they know of any other states pending lawsuits, since I would believe that lawers elsewhere would be trying to get information. I'll post whatever response I get here.

On July 26, 2004, Los Angeles Superior Court Judge Howard Schwab issued his ruling in the liability stage of the class-action lawsuit Estrada v. FedEx. The decision, issued following nine weeks of trial and extensive post-trial briefing, finds that all single route pickup and delivery drivers employed by FedEx Ground in California are employees, contrary to the Company's attempt to designate them as independent contractors. The Court also found that the drivers have not been indemnified for expenses incurred in the course of their work, and the Court therefore ordered the parties to return for phase two of the trial, in order to determine the extent of the company's monetary obligations toward class members. A more complete summary can be found in plaintiffs' press release announcing the decision.