News & Analysis as of

FedEx

April 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

April was a red-hot month for independent contractor misclassification cases. We report below on 11 cases in the courts and two before administrative agencies involving...more

FRANCHISEE 101: Special Delivery

by Lewitt Hackman on

For a relationship to meet the legal definition of a "franchise" in some jurisdictions, the franchisor must give significant assistance to, or have significant control over, the franchisee's business. A franchisor's...more

Employment Law Letter - Spring 2017

by Shipman & Goodwin LLP on

Some time ago, the U.S. Department of Labor announced a focus on what it saw as a workplace trend, namely the characterization of people performing functions that are an integral part of the employer’s business (not plumbers...more

Class Representatives Do Not Hold Veto Power Over Class Settlement

by Carlton Fields on

In In re FedEx Ground Package Sys., Inc. Employment Practices Litig., No. 3:05-CV-595 RLM, 2017 WL 632119 (N.D. Ind. Feb. 14, 2017), only one of a total of seven class representatives signed off on accepting a proposed class...more

New District of New Jersey Case Shows Importance of Requiring Drivers to Form Corporate Entities in Misclassification Cases

by Genova Burns LLC on

Late last month, District of New Jersey Judge Robert B. Kugler partially granted FedEx Ground Package Systems Inc. (“FedEx”)’s Motion to Dismiss in a trucking misclassification case. The court dismissed several claims but...more

March 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

The past month included significant state and federal appellate court decisions, large settlements of IC misclassification class actions, class and collective action certifications, and two IC misclassification class actions...more

Mandatory Disclosure of Prescription Drug Use May Violate ADA

When an employee tests positive for illegal drug use or self-discloses such use, many employers condition return to work on the employee’s participation in a substance abuse treatment program. These programs can include drug...more

The D.C. Circuit Vacates NLRB Ruling on Driver Status in FedEx Case

by Genova Burns LLC on

In early March 2017, the D.C. Circuit in FedEx Home Delivery v. NLRB, 2017 U.S. App. LEXIS 3826 (D.C. Cir. 2017) vacated a National Labor Relations Board (“NLRB” or “the Board”) ruling that Connecticut FedEx drivers...more

Court of Appeals Again Rejects National Labor Relations Board, Finds FedEx Ground Drivers Are Independent Contractors

by McGuireWoods LLP on

The U.S. Court of Appeals for the D.C. Circuit in a published opinion earlier this month emphasized that it means what it says. In 2009, the Court held in FedEx I that single-route FedEx drivers in Wilmington, Massachusetts...more

FedEx Can Keep On Copying for Creative Commons Licensee

by Dorsey & Whitney LLP on

Fed Ex Office and Print Services recently scored a victory in Great Minds v. FedEx Office and Print Services, Inc., securing dismissal of a copyright infringement action based on the copying of educational materials for...more

FedEx Succeeds Again On Appeal of an NLRB Ruling on Independent Contractor Misclassification

by Pepper Hamilton LLP on

In the past 2-1/2 years, FedEx has suffered through some appellate court setbacks in the area of independent contractor misclassification, beginning with a decision by the U.S. Court of Appeals for the Ninth Circuit in San...more

ERISA (10th Circuit): Does the ERISA Plan Breach Fiduciary Duties by Informing the Employer of an Employee/Disability Claimant’s...

Can an ERISA plan administrator tell an employer about an employee’s substance abuse? Doesn’t that breach fiduciary duties to the employee/claimant? Probably not. Check the employer’s employment policies because an...more

December 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

In our update for last month’s developments in this area of the law, we report on five significant court cases involving companies in the transportation industry that use ICs as an integral part of their business model. Each...more

Massachusetts High Court Rules Prong Two of Independent Contractor Test is Severable for FAAAA Preemption Purposes

Massachusetts’s highest court recently issued a decision that impacts the ability of delivery companies operating in the commonwealth to use independent contractors in providing delivery services. In Chambers v. RDI...more

October 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our update for this past month is noteworthy for the fact that we report below on IC misclassification lawsuits plaguing some of the largest and most recognizable companies in the U.S. (like Uber, Amazon, and FedEx) as well...more

Self-Inflicted IC Misclassification Wounds: How Did FedEx Bludgeon Itself Into Pay Nearing $500 Million to Settle Claims That It...

by Pepper Hamilton LLP on

FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of its inability to draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last...more

Beyond Black and White

Last month, Federal Express announced that all of its logos moving forward would use the brand's recognizable purple and orange color scheme. Before this change, each division of the company used different colors paired with...more

InterConnect Flash No. 56 - IC Classification Claims Preempted by Federal Truth-In-Leasing Regulations

by Benesch on

We first reported on the Remington v. J.B. Hunt, Inc. case last year in Flash No. 46. Based on the First Circuit Court of Appeals’ decision in Massachusetts Delivery Ass’n v. Coakley, 769 F.3d 11 (1st Cir. 2014) (“MDA”),...more

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

by Pepper Hamilton LLP on

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Resource Employment Solutions Pays $435,000 to Settle EEOC Race Discrimination Suit

Company Illegally Granted Placement Preferences to Hispanic Temps over Black Temps, Federal Agency Charged - MEMPHIS, Tenn.-Resource Employment Solutions, LLC (Resource), a temporary staffing agency headquartered in...more

When It Absolutely, Positively Has to Be Indicted Overnight: How to Prevent Future Debacles Like the FedEx Prosecution

by Pepper Hamilton LLP on

Against the backdrop of years of unprecedented monetary penalties imposed through DOJ civil settlements and deferred prosecution agreements with financial institutions embroiled in the 2008 financial meltdown, the DOJ came...more

Uber’s $100 Million Settlement Rejected by Judge; Independent Contractor Misclassification Lawsuit to Proceed

by Pepper Hamilton LLP on

Earlier yesterday, Uber was dealt yet another setback in its efforts to settle the IC misclassification lawsuits brought against it by Uber drivers in California and Massachusetts. As readers of this legal blog will recall...more

FedEx Settlement with California Department of Toxic Substances Control Contains Important Lessons/Reminders for Product and Waste...

by Beveridge & Diamond PC on

On June 14, 2016, FedEx Ground Package System, Inc. (“FedEx”) entered into a settlement with the California Department of Toxic Substances Control (“DTSC”) to resolve allegations that FedEx improperly handled, transported,...more

June 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

DOJ dismisses last of the drug trafficking charges against FedEx: two key takeaways

by DLA Piper on

Recently, four days into what had been scheduled to be a seven-week trial, the US Department of Justice voluntarily dismissed the last of the criminal charges it had brought in its money laundering and drug trafficking...more

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