FedEx Settles Driver Classification Lawsuit for $240M for its “Independent Contractors”
FedEx announced its most recent settlement of $240 million arising out of the misclassification of its truck drivers as independent contractors to avoid employer obligations to its drivers.
In 2014 and 2015, FedEx has suffered major judicial opinion setbacks for labeling its drivers in its Home Delivery and Ground divisions as “independent contractors” in the Supreme Court of Kansas, the 9th Circuit, and 7th Circuit Court of Appeals. After these adverse decisions, FedEx settled and has paid or agreed to pay $226,000,000 to resolve its California mislabeling of employees issue in order to avoid a much larger judgment. The most recent $240,000,000 settlement brings its settlements to over $460,000,000 for calling its drivers “independent contractors.”
These appellate decisions have real consequences in pending truck wreck collision cases involving serious personal and catastrophic injury and wrongful death. Calling employees “independent contractors” is a pandemic in the motor carrier industry, and is done not only to avoid payroll, tax, and benefit obligations to their drivers, but also to attempt to avoid liability in truck wreck accident cases in Georgia and throughout the country.
FedEx and other motor carriers want all the benefits and rewards of a business, but try to shirk risks and responsibilities by refusing to classify drivers as actual employees. If FedEx and other trucking companies and insurers are doing this to their own drivers, guess what they will do to victims in serious injury or wrongful death truck wreck cases.
It takes an experienced Georgia truck accident attorney to identify, fight, and win these issues. Call Terry D. Jackson P.C. today to get our team started on your truck collision case. We’re not afraid to go to court and have won some of the largest verdicts in the state!
Schedule a free consultation when you call (404) 659-2400.