FedEx drivers win US$14.4m in labor case

Source: Supply Chain Digital

Date :10/21/2008 6:47:54 AM

A court-appointed official has awarded California drivers for FedEx Corp about US$14.4 million in a dispute over whether the delivery company illegally classified them as independent contractors instead of employees.

Lawyers for about 200 drivers said Monday, October 20, that the award for job-related expenses and interest is about US$9 million more than was awarded to the drivers by a trial court in 2005.

The court-appointed referee, Judge William J Cahill, was asked to decide the issue of additional compensation and interest owed to the drivers. Documents in the case detailed expenditures for fuel, vehicle maintenance, insurance and uniforms for the drivers.

Lawyers for the drivers argued that FedEx made drivers pay US$7 million in improper expenses. FedEx objected to about US$1 million in expenses, but of that Cahill denied only US$32,000 worth.

FedEx said it will review the recommendation and contest any disputed items.

"It is important to note that there are several steps necessary - reviews, comments and filings - before the judge can make a final ruling on this matter on these reimbursements," said company spokesman Maury S Lane.