The Kansas Supreme Court just issued an opinion that hundreds of truck drivers who delivered packages were employees and not independent contractors. This has huge tax, benefit and healthcare repercussions for FedEx.

According to the court, the drivers sued FedEx alleging they were improperly classified as independent contractors under the law. The drivers are seeking to recoup retroactive costs and expenses, as well as overtime. The state court issued the opinion in response to a request from the Seventh Circuit Court of Appeals, which is considering appeals in 20 class-action suits, including the one in Kansas. All those had been decided in FedEx’s favor.

The Kansas court’s opinion is a setback for FedEx in a long-running dispute between it and some delivery drivers about whether they were contractors or employees before the company changed its business model in 2011, when it started contracting with corporations that employed drivers. In August, a panel of the Ninth Circuit Court of Appeals also ruled against the company in a similar case that the company is appealing. The bottom line is that one must carefully document an the agreement and be honest in abiding by it.

At the law firm of William A. Miller we can help draft an independent contractor agreement and explain the benefit or danger of such. Call Bill at 602-319-6899 to discuss it or stop by for a visit at 8170 North 86th Place Suite 208 Scottsdale, Arizona 85258.

Comments are closed.