In a class action lawsuit brought on behalf of approximately 2300 full-time FedEx delivery drivers in California between 2000 and 2007, the Ninth Circuit Court of Appeals ruled that by law the FedEx drivers were employees under California’s right-to-control test. The Court held that labeling of the drivers as independent contractors in FedEx’s Operating Agreement did not make them so.
The Court explained that the most important factor in determining employee versus independent contractor status is the right-to-control test. The Court held that since FedEx had broad rights to control the manner in which its drivers perform their work under, the right-to-control test strongly favored employee over independent contractor status On that basis, the Court held the drivers were employees as a matter of law.
For the Full Court Opinion click here