FedEx Settles Independent Contractor Suit for $228 Million
FedEx Ground reached an agreement with plaintiffs in an independent contractor lawsuit to settle for $228 million.
by Staff
June 12, 2015
FedEx says its contractors no longer operate under the model challenged in this case. Photo: FedEx
1 min to read
FedEx says its contractors no longer operate under the model challenged in this case. Photo: FedEx
FedEx Ground reached an agreement with plaintiffs in an independent contractor lawsuit to settle for $228 million, the company announced.
The settlement resolves claims, which date back to 2000, of workers who were classified as independent contractors. The lawsuit contended in reality they were employees. The case was pending in the U.S. District court for the Northern District of California and the settlement is subject to court approval.
In another case in Kansas later that year, the court also ruled in favor of FedEx Ground workers being classified as employees instead of independent contractors.
“FedEx Ground faced a unique challenge in defending this case given the decision of the Ninth Circuit Court of Appeals last summer,” said Christine P. Richards, executive vice president and general counsel of FedEx Corp. “This settlement resolves claims dating back to 2000 that concern a model FedEx Ground no longer operates.”
The company also announced that it would charge $133 million after taxes or 0.47 cents per diluted share in the fourth quarter of 2015 to increase its reserve of money to pay toward the settlement.
AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.
As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?
Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.
A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.
This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.
In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?
In this episode, fleet leaders from municipal, university, and private-sector organizations share a candid EV reality check. From infrastructure setbacks and policy whiplash to grant funding, total cost of ownership, and charging resiliency, this conversation dives into what it actually takes to scale electrification in the real world.
After a decade of lagging compensation, fleet manager pay is climbing. But expanding responsibilities, larger fleets, and growing complexity continue to redefine the role.
