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News | Jun 04, 2010

Federal Court Rules that FedEx Drivers are Misclassified as Independent Contractors

On May 28, 2010, United States District Judge Robert L. Miller, Jr. of the USDC for the Northern District of Indiana issued an important opinion in the multi-district litigation entitled In re FedEx Ground Package System, Inc. Employment Practices Litigation, 3:05-md-00527-RM (N.D. Ill.). In patricular, the court issued summary judgment against FedEx on the issue of whether Illinois drivers working for FedEx Ground and FedEx Home Delivery are properly classified as independent contractors (rather than employees) under the Illinois overtime law. FedEx claimed that the drivers were not entitled to overtime pay under the state law because they were independent contractors. The Court disagreed, explaining that, under Illinois law, the drivers are employees because their day-to-day activities are deeply integrated into FedEx’s business operations. Thus, the drivers are entitled to overtime pay. Obviously, this is an important decision for Illinois overtime lawyers.

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