FedEx Ground settles California owner-operator classification lawsuit - Truckers' Trucking Forum

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FedEx Ground settles California owner-operator classification lawsuit

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12.09.2008

Cybergal

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FedEx Ground settles California owner-operator classification lawsuit

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FedEx Ground has agreed to a $26.8 million court settlement with 203 California drivers who argued they were misclassified by the company as independent contractors. Final court approval of the judgment is required. The decision was announced Friday, Dec. 5.

The case of Estrada vs. FedEx Ground Package System Inc. went to trial before California Superior Court Judge Howard Schwab (ret.) in 2004. He ruled that the drivers were legally employees and entitled to be reimbursed for all the expenses they were required to pay by the company. In August 2007, the California Court of Appeals affirmed the judgment that the drivers were employees and doubled the damages awarded to the drivers.
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