A class action removed to California district court alleges FedEx has misclassified truck drivers subject to Linehaul Contractor Operating Agreements as independent contractors, depriving the workers of proper wages, benefits, and recoupment for operating costs.
According to the lawsuit, defendant FedEx Ground Package System, in “a scheme to increase their profits,” blatantly misclassified the plaintiff and similarly situated truck drivers despite the fact that the company “completely controls the overall operation of its business.” This includes, the suit elaborates, coordination with customers, price negotiations, the determination of delivery times, and the provision of workers. Moreover, FedEx, according to the case, controls linehaul truckers’ assignments, schedules, customer service standards, equipment, logging devices, and trucks.
Overlaying the plaintiff’s misclassification claims are allegations that FedEx causes linehaul truckers to absorb “thousands of dollars of costs,” leaving the workers with limited take-home pay, due to its alleged failure to abide by state and federal labor laws. The lawsuit alleges FedEx has failed to provide the supposedly misclassified truck drivers with workers’ compensation benefits, notwithstanding the taxes it would owe California had the drivers been classified as bona fide employees.