Judge allows FedEx drivers to sue for benefits as group

FedEx Corp.’s thousands of independent drivers can sue as a group for benefits sought in litigation originally filed by contract workers claiming they should be paid as full-time employees, a federal judge ruled Monday.

U.S. District Judge Robert Miller in South Bend, Ind., said the drivers could proceed with a class action against FedEx on claims that they deserve full-time benefits under federal law.

The ruling didn’t address the claims’ merits. Plaintiffs’ attorneys said the class consisted of more than 20,000 past and present contractors.

FedEx, the second-largest U.S. package-delivery company, uses an independent-contractor system for its ground shipping unit and classifies those employees as self-employed. The contractor model helped FedEx gain 19% of the ground delivery market. United Parcel Service Inc. is the biggest U.S. package-delivery company.

FedEx spokesman Maury Lane said the company would appeal immediately.

On Sept. 12, Miller ruled that FedEx’s phaseout of a single-route contract driver program was legal. He denied plaintiffs’ request to halt the program.