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

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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 are independent contractors, not employees, and therefore not entitled to the NLRA’s protections.

Five years later, despite this ruling, the NLRB held “on a materially indistinguishable factual record” that single-route FedEx drivers in Hartford, Connecticut are nevertheless statutorily protected employees.  The NLRB acknowledged that FedEx I was “virtually identical” but nevertheless “declined to adopt” the Court’s 2009 interpretation of the NLRA.  The NLRB principally disagreed with the emphasis the D.C. Circuit placed on “entrepreneurial opportunity” as a factor in determining whether a worker is an employee or an independent contractor.  In the NLRB’s view, the D.C. Circuit placed undue weight on that single factor, rather than weighing it as part of a broader consideration.

On review, the D.C. Circuit chastised the NLRB because the question presented “was already asked and answered in FedEx I.”  The Court explained that “[i]t is as clear as clear can be that the same issue presented in a later case in the same court should lead to the same result.”  The NLRB chose not to seek Supreme Court review of FedEx I and cannot get a second bite at the apple merely by asking a different panel of the appeals court to reconsider its 2009 FedEx I ruling.

This case represents not only a long-awaited win for FedEx, but also a broader rejection of the NLRB’s efforts to reverse case law by way of the “try, try again” tactic.  Absent Supreme Court review, the D.C. Circuit’s legal pronouncements in FedEx I will govern the independent contractor status of single-route FedEx drivers.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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