FedEx to Appeal Decision in Contractors Case

FedEx Corp. (FDX) on Wednesday said it intends to appeal the decision of a three-judge federal panel that found drivers the company had classified as independent contractors were employees.

The appeal, which would next be heard by the full U.S. Court of Appeals for the Ninth Circuit, stems from lawsuits originally filed in California involving about 2,300 full-time delivery drivers for FedEx in that state between 2000 and 2007 and two suits filed in Oregon involving 363 individuals who were full-time delivery drivers between 1999 and 2009.

"We fundamentally disagree with these rulings, which run counter to more than 100 state and federal findings--including the U.S. Court of Appeals for the D.C. Circuit--upholding our contractual relationships with thousands of independent businesses," FedEx Ground Senior Vice President and General Counsel Cary Blancett said in a statement.

Judge William A. Fletcher wrote in the three-judge panel's decision that FedEx Ground contracts with drivers who must wear FedEx uniforms, drive FedEx-approved vehicles and groom themselves according to FedEx's appearance standards to deliver packages to its customers.

"FedEx tells its drivers what packages to deliver, on what days, and at what times," he said. "Although drivers may operate multiple delivery routes and hire third parties to help perform their work, they may do so only with FedEx's consent."

Write to Maria Armental at [e-mail]

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