October 28, 2008
FedEx Ground Ordered to Deliver $14.4 Million in Employee Dispute
Filed under: News
Vision Payroll

A court-appointed referee, retired California Superior Court Judge William J. Cahill, has awarded current and former drivers for FedEx Ground Package Systems, Inc. (FedEx) $14.4 million in expenses and interest. In 2005, the court granted judgment to the plaintiffs in a class-action suit against FedEx, a successor to the original defendant Roadway Package Systems, Inc (Estrada v. Fed Ex Ground, Los Angeles County Super. Ct. No. BC210130). The suit alleged that several drivers were improperly misclassified as independent contractors, not employees. As independent contractors, the drivers incurred expenses for fuel, vehicle maintenance, and insurance, among other costs. Since the drivers should have been classified as employees, these costs should have been paid by their employer, FedEx. In an order subject to a December hearing, only $32,000 of the requested expenses was denied.


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