A California appeals
court has upheld a ruling that FedEx drivers who sued the company over
work-related reimbursements were employees rather than independent contractors.1 The court cited a lower
court’s findings that the drivers were totally integrated into the FedEx
operation, performed work essential to FedEx’s core business, were not required
to use any specialized skills, and had to wear uniforms and “conform absolutely”
to FedEx’s standards. Additionally, even though the drivers bought their own
trucks, FedEx was involved in the purchasing process by providing funds and
recommending vendors.
Although the workers
signed detailed agreements identifying them as independent contractors, the
court noted that the label “will be ignored” if actual conduct establishes a
different relationship. Here, the court said, “FedEx’s control over every
exquisite detail of the drivers’ performance, including the color of their
socks and the style of their hair,” supported the finding that the drivers were
employees.
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1 Estrada v. FedEx Ground
Package System, Inc.,
Court of Appeals (Dist. 2) No. B189031, 2007
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