News online
US Fedex drivers set to win US$14.4 million in employee misclassification case
31 October 2008
A US state court has recommended that Fedex drivers receive a US$14.4 million award in an ongoing legal case over the misclassification of employees at the company.
Some 200 Fedex drivers, including former employees, were granted the tentative award on 17 October by Superior Court Judge William J Cahill in Los Angeles, California. The settlement compensates the workers for job-related expenses as well as interest. In 2005, a court awarded the employees approximately US$5.3 million following a ruling, which found the drivers had been illegally classified as independent contractors when they were actually employees. Judge William J Cahill was asked to take a decision on additional compensation and interest that should be awarded to the drivers following the original ruling.
The matter of the final award will be decided during a court hearing on 15 December. Fedex managers have pledged to review the recommendation.
The move paves the way for similar cases involving drivers and former drivers across 40 US states; these have been consolidated into a federal lawsuit in the state of Indiana. Nearly 27,000 other drivers and former drivers have decided to participate in the action.
Back to current news online stories
|
view larger image
