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Independent Contractors in FedEx Uniforms?

October 1st, 2007 by John Campbell

When you see a FedEx worker walking down the street, or coming in the office, or driving in the truck, did you ever think they might not be FedEx workers at all?  FedEx, in a long court battle, argued just that, saying that FedEx drivers were independent contractors. Thankfully, a decision issued August 13, 2007, by a California appellate court confirmed that common sense has a place in the law. (Read the whole opinion by clicking here - Estrada, et al. v. Fed Ex Ground Package Systems, Inc.) The Court rejected FedEx’s arguments, and held that FedEx drivers are not “independent” after all.   

The court noted that FedEx drivers are in Fed Ex trucks, they have FedEx uniforms (even their socks), they deliver FedEx packages, and FedEx controls their hair styles.  The court seemed to echo the saying my dad always used when I was a kid.  “If it walks like a duck, looks like a duck, and quacks like a duck, it’s a duck.” 

Okay…FedEx drivers are not independent contractors, but why does that matter and what does it mean? It matters because it protects those drivers from being exploited.  It means FedEx, and not the drivers, is responsible for a number of different expenses.  For example, apparently, drivers were not reimbursed for expenses such as gasoline, maintenance and insurance to cover accidents. The Court’s ruling prevents FedEx from shifting these costs to its workers in the future and guarantees that FedEx will have to pay workers back for what they have already spent.   Put another way, the Court’s ruling protects hard working people from having to pay the bills for a successful company. 

Unfortunately, the practice, of having company costs shoved onto everyday workers might sound familiar to workers who have been classified as “management” so that they are not paid overtime, or workers who are kept just below “full-time” hours, so that they cannot earn benefits and insurance.  Other workers have an even more similar situation.  It is very common for businesses to classify workers as “independent contractors” to save money on taxes and to shift costs.  I am certain FedEx is not the only big company to pinch pennies this way.  

At Simon Passanante, attorneys spend most of their time fighting for people who have been hurt by businesses.  If you have been classified as an “independent contractor” but a company controls your dress, your decisions, your duties and yours hours, you might have the same problem the FedEx workers did.  If you have been called a “manager” so that you can be required to work nights and weekends without additional compensation, but your job doesn’t feel managerial to you, this could be a problem too.  You might not be able to tell whether your employer (or former employer) is working within the law, but if  you think that you’re being taken advantage of, I’d be glad to talk to you.  I’ll help if I can.  Please feel free to contact me by clicking here.

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