Stop FedEx's Misclassification of Drivers

Even though they wear FedEx uniforms and drive FedEx trucks to FedEx customers, the men and women who work for FedEx's Ground and Home Delivery subsidiaries are not FedEx employees. Before being allowed to work, these drivers must sign “Operating Agreements” that identify them as “independent contractors.”

As independent contractors, the drivers must bear the burden of a number of expenses that by all rights FedEx should cover, such as maintaining their trucks. When a Ground or Home Delivery driver is injured and files for workers’ compensation or files for unemployment benefits, the company challenges the driver’s claim. And FedEx has the right to change or terminate contracts as it sees fit.

The full story of how FedEx is denying these drivers their rights is laid out in this American Rights at Work and Leadership Conference on Civil Rights report.

The drivers who are fed up with the FedEx bait and switch are challenging the company in court and in complaints filed with state and federal agencies. And the drivers are winning. But more must be done. Complete the form on the right to forward the email below to your governor. Ask that these legally questionable agreements be investigated.

Subject:

Dear Governor

(Edit Letter Below)

I'm writing to ask you to investigate the unfair business practices of the FedEx Corporation subsidiaries FedEx Ground and FedEx Home Delivery. Both companies force drivers to sign a legally suspect "Operating Agreement" as a condition to taking a position at FedEx.

The agreement refers to drivers as "independent contractors" and gives FedEx the sole right to change or terminate contracts as the company sees fit. The agreement passes a number of business expenses onto the drivers that rightfully should be FedEx's responsibility. FedEx Ground and FedEx Home Delivery can skip out on workers' compensation coverage, unemployment insurance coverage and other payroll withholding responsibilities and put the burdens on the drivers. When a Ground or Home Delivery driver is injured and files for workers' compensation or files for unemployment benefits, the company challenges the driver's claims.

Increasing numbers of Ground and Home Delivery drivers--both single-route area drivers and multiple-vehicle "contractors"--are fighting back against the fraud in civil courts around the country.

In 2004, a group of drivers won a judgment that the company misclassified its drivers as "independent contractors" and the judge ordered FedEx to properly classify all its single route drivers in California as employees (Estrada v FedEx Ground Package Systems; Los Angeles Co. Superior Court Case #BC210130).

In 2004, the California Employment Development Department determined that single-route drivers were wrongly classified and assessed FedEx millions in back taxes.  FedEx appealed this assessment to the California Unemployment Insurance Appeals Board. In 2006, the Appeals Board upheld the EDD judgment and assessment (FedEx Ground v Employment Development Dept.; California Unemployment Insurance Appeals Board Case #1485661T).

In 2005, the Oregon Employment Department issued an administrative decision that a multiple-vehicle "contractor" was wrongly classified and eligible for unemployment benefits. FedEx appealed that decision. Upon appeal, an Administrative Law Judge upheld the administrative decision. In 2006, FedEx appealed to the Oregon Court of Appeals but finally withdrew its appeal in December 2006 (FedEx Home Delivery v Oregon Employment Dept.; Oregon Court of Appeals Case #CA-A132438).

In 2007, a federal judge in Indiana agreed to move ahead with a national class action lawsuit brought by drivers in more than 30 states.  And the California Court of Appeal upheld the Estrada ruling from 2004.  FedEx is on a long losing streak with its failed arguments that these drivers are employees.

FedEx's anti-union practices and repeated discriminatory behavior is documented in the report "Fed Up at FedEx" released in October by American Rights at Work and the Leadership Conference on Civil Rights.  That report cites court decisions, judge's rulings and witness accounts of misclassification at FedEx.  You can see the whole report at http://www.americanrightsatwork.org/fedex online.

The "agreement" that FedEx forces drivers to sign as a pre-condition to employment may act like a fraudulent contract. First, FedEx deceives the potential drivers by wrongly classifying its employee/drivers as "independent contractors." Second, FedEx fails to inform the potential drivers which conditions of the agreement are under legal review.

Sincerely,
[Your name]
[Your address]