Message to Uber? Court Says FedEx Drivers Are Employees (Not Independent Contractors)

Unlike UPS, which uses a traditional employment model, FedEx requires many drivers to sign an independent contractor agreement. Drivers buy their trucks (financed through FedEx), and are paid via a complex reimbursement model. They pay out of pocket for gas, maintenance and such. Last month, FedEx agreed to pay $228 million to settle a misclassification case in California, and the 9th and 11th Circuits have reinstated similar suits by drivers in Oregon and Florida. Yesterday, the U.S. Seventh Circuit Court reached a similar conclusion in Craig v. FedEx Ground Package System Inc. Beth Ross, lawyer for the FedEx plaintiffs, said firms with a faulty model for independent contracting should take note (she referred to Uber and Lyft).For more: http://scholar.google.com/scholar_case?case=14140219198002549549&hl=en&as_sdt=6&as_vis=1&oi=scholarr