Gray v. FedEx Ground Package Sys., Inc., No. 14-3232 (8th Cir. 2015)
Annotate this CaseFedEx contracts with operators to take packages from its terminals to homes and businesses. FedEx assigns each territory to an operator. Former operators claim that FedEx defrauded them as to their employment status, denying them benefits, such as overtime pay and workers’ compensation. Operators were paid based on the numbers of packages and stops serviced and were not required to drive personally; they could hire others, subject to FedEx’s qualifications. Operators received a proprietary interest in their territories, which they could sell, subject to approval. FedEx could not fire the operators at will during their contract terms, but could fire them for cause, and could choose not to renew their contracts for any reason. Operators provided their own vehicles. FedEx managers could ride along on four delivery runs per year. Contracts stated that an operator made deliveries “strictly as an independent contractor, and not as an employee,” but FedEx required that operators’ vehicles bear FedEx’s logo and be painted “FedEx White.” Operators had to provide proof of inspection and maintenance. Drivers had to wear a FedEx uniform and meet FedEx personal appearances standards. Drivers were subject to background, credit, and drug checks. They had to use FedEx package scanners. The district court granted plaintiffs partial summary judgment, finding no genuine dispute that they were FedEx employees, even though under Missouri law employment status is an issue of fact. The Eighth Circuit reversed, finding that a reasonable jury could disagree.
Court Description: Gruender, Author, with Melloy and Benton, Circuit Judge.] Civil Case - diversity. The question whether FedEx operators are employees or independent contractors is presented. Operators contracted with FedEx but were not required to drive personally; they could hire others to drive subject to FedEx's qualifications. Former operators brought suit. Following a remand of the Missouri cases from the multi-district litigation for an analysis of driver-by-driver circumstances, the district court ruled the operators were employees as a matter of Missouri law and set the case for a jury trial. The jury found for the FedEx operators and awarded damages. FedEx appealed the district court's determination the operators were employees and appealed from the jury verdicts. Under Missouri law, employment status is a question of fact, and under the eight-factor test, the district court erred in determining as a matter of law that the operators were employees, as reasonable jury could conclude that the operators were independent contractors. The question of the status should have been submitted to a jury.
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