FedEx Misclassification Jury Trial Settled After One Day of Testimony

After only one day of testimony, FedEx agreed to settle a misclassification lawsuit.

The Case: Hinds v. FedEx Ground Package System Inc.

The Court: N.D. Cal.

The Case No.: 4:18-cv-01431

The Plaintiff: Hinds v. FedEx Ground Package System Inc.

The plaintiffs filed a class action complaint in 2018 against FedEx Ground. According to court documents, FedEx Ground operates distribution facilities at numerous spots throughout California. As part of their standard operations, FedEx Ground has contracts with multiple small “motor carriers” that provide both vehicles and drivers for package pick at FedEx Ground distribution facilities. After picking up packages, the drivers delivered them to customers. The carriers also pick up parcels from FedEx customers and deliver them back to the FedEx Ground facility. According to the complaint, FedEx worked with Bay Rim Services as an independent service provider to engage two drivers. The drivers filed suit, citing Bay Rim and FedEx Ground as joint employers who jointly violated California Labor Code provisions regarding overtime pay, meal and rest breaks, and maintaining records of employee hours and pay.

The Defendant: Hinds v. FedEx Ground Package System Inc.

The defendant in the case, FedEx Ground Package System Inc., claims they are not a joint employer and had no role in the hiring or terminating of Bay Rim drivers, employment conditions, or paychecks.

The Case: Hinds v. FedEx Ground Package System Inc.

Last year the court denied the plaintiffs’ motion to certify a class of drivers deciding that the drivers failed to establish a common issue predominant throughout the class of drivers who provided services to carriers. During the first day (and only day) of testimony at the jury trial, the plaintiff’s legal team argued that Bay Rim and other independent service providers who work with FedEx are generally “mom-and-pop” companies that work exclusively with FedEx. With only a few trucks and drivers dedicated to providing services contracted through FedEx, the companies must become LLCs and comply with FedEx company rules. After just one day of testimony, FedEx agreed to settle the case. The terms of the settlement are confidential.

If you have questions about how to file a California overtime lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.