News & Analysis as of

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

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

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

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

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...

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

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

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

DOJ Folds Criminal Case Against Federal Express

In another set back last week, after a contentious criminal prosecution, the government dismissed its criminal charges against Federal Express. DOJ indicted Federal Express for drug trafficking relating to shipping of illegal...more

$240 Million Settlement Closes Chapter on FedEx IC Misclassification Lawsuits

FedEx yesterday announced that it reached a settlement of its remaining independent contractor class action lawsuits in 20 states with its Ground Division drivers for $240 million, pending court approval. Coming on the heels...more

Court Slams DOJ By Dismissing The Majority Of Indictment Against Fedex – Rules The Defense Does Not Have A Duty To Correct DOJ’s...

In the ambitious and novel federal criminal prosecution of FedEx for alleged drug distribution conspiracy, Judge Charles R. Breyer recently ruled that defense counsel has no duty to correct government’s mistakes when...more

Same-Day Delivery Companies: 2; MA Independent Contractor Statute: 0. First Circuit Once Again Upholds Classification of Couriers...

Relying on its precedent, the First Circuit Court of Appeals held for the second time this year that the Federal Aviation Administrative Authorization Act of 1994 (“FAAAA”) preempts application of the Massachusetts...more

Appellate Court Notes

Supreme Court Advance Release Opinions: SC19233, SC19234 - State v. Wright - SC19233, SC19234 Concurrence - State v. Wright - SC19382 - State v. Anthony D. - SC19382 Dissent - State v. Anthony D....more

April 2016 Independent Contractor Misclassification and Compliance News Update

This past month involved the settlement of a number of high profile IC misclassification cases. In one case, a federal court gave conditional approval to a $226 million settlement between FedEx and its Ground Division...more

The Eighth Circuit Upholds Specialty Healthcare

Last week, the U.S. Court of Appeals for the Eighth Circuit upheld the National Labor Relations Board’s Specialty Healthcare framework for determining whether a union’s petitioned-for bargaining unit is appropriate. Under...more

Eighth Circuit Defers to NLRB’s Specialty Healthcare Standard

This week, the Eighth Circuit Court of Appeals joined the Sixth Circuit in deferring to the NLRB’s Specialty Healthcare standard for determining appropriate bargaining units in union representation cases. The decision is yet...more

First Circuit Allows FedEx Drivers to Continue with Wage-and-Hour Claims under Massachusetts Wage Act

Misclassification of workers is a trending topic in employment law and can result in significant financial damages for unwary employers. In Schwann v. FedEx Ground Package System, Inc., No. 15-1214, U.S. App. 1st Cir. 2016,...more

The InterConnect Flash! No. 53 - February 2016

2 Steps Back — First Circuit Could Have Done More for the Independent Contractor Business Model - Approximately one year ago in FLASH No. 46, we wrote about Massachusetts District Court Judge Robert G. Stearns’ industry...more

Minimizing Independent Contractor Misclassification Risk: “Play it Safe” or “Play it Smart”

Frances McMorris, who covers the transportation and hospitality industries for American City Business Journals (ACBJ), wrote an article on January 29 about the impact of the latest Uber lawsuit on businesses that use...more

Update on Significant DOT, FAA and Other Federal Agencies’ Aviation-Related Regulatory Actions - February 2016

This edition of the Cozen O’Connor Aviation Regulatory Update includes the recently signed U.S.-Mexico bilateral agreement that liberalizes air services between the two countries, new Cuba-related regulations loosening...more

California Court Recognizes Same-Sex Marriage a Week Prior to Windsor

Earlier this month, the U.S. District Court for the Northern District of California recognized the retroactive application of United States v. Windsor. In Schuett v. FedEx Corporation, plaintiff and her long-time...more

Is a Qualified Retirement Plan Required to Apply Windsor Retroactively?

Following the Supreme Court’s 2013 decision in U.S. v. Windsor (in which the Court held that Section 3 of the federal Defense of Marriage Act (“DOMA”) was unconstitutional), one of the questions facing sponsors of...more

Jury Sides with FedEx in ADA Failure to Accommodate Case

For those of you who think the Americans with Disabilities Act (ADA) means you have to do whatever a disabled employee wants, I bring good news from of all sources, a jury in California. This case had it all—an employee...more

FedEx Enters Settlement with California District Attorneys to Partially Resolve Allegations of Mismanagement of Damaged Products,...

On July 28, 2015, FedEx Ground Package System, Inc. (“FedEx”) entered into a settlement agreement (“Settlement”) with a group of California District Attorneys to partially resolve allegations that the company stored and...more

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