The Car and Truck Fleet and Leasing Management Magazine

FedEx Employees Wrongly Classified as Independent Contractors

February 21, 2006

NORTHBORO, MA – The National Labor Relations Board ruled on Jan. 24 that FedEx drivers in Northboro were wrongly classified as independent contractors, according to a Reuters report. The Teamsters, the union seeking to represent the drivers, argued that classifying the drivers as employees makes them eligible for overtime and healthcare benefits. FedEx Ground said the system promotes entrepreneurship and is what makes FedEx Ground competitive and profitable. The Teamsters said that the 23 drivers at FedEx Ground division FedEx Home Delivery can participate in an election on forming a union next month. If the company’s drivers vote to form a union, FedEx will appeal the ruling, the Reuters report said. More than 30 class action lawsuits from contractor drivers are pending in 24 U.S. states. A California court has also ruled that FedEx Ground single-route drivers in that state are employees and that they should be reclassified as such by Apr. 2006.
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