FedEx drivers win $14.4 million in labor case
AP State | Monday, Oct 20 2008 2:58 PM
Last Updated: Monday, Oct 20 2008 3:53 PM

A court-appointed official has awarded drivers for FedEx Corp. in California about $14.4 million in a dispute over whether the delivery company illegally classified them as independent contractors instead of employees.

Lawyers for about 200 drivers said Monday that the award for job-related expenses and interest is about $9 million more than was awarded to the drivers by a trial court in 2005.

FedEx said the company will review the recommendation and contest any disputed items.

"It is important to note that there are several steps necessary - reviews, comments and filings - before the judge can make a final ruling on this matter on these reimbursements," said FedEx spokesman Maury S. Lane.

The court-appointed referee, retired state Superior Court Judge William J. Cahill, was asked to decide the issue of additional compensation and interest owed to the drivers.

Documents in the case detailed expenditures for fuel, vehicle maintenance, insurance and uniforms for the drivers.

Lawyers for the drivers argued that the company made drivers pay $7 million in improper expenses. FedEx objected to about $1 million in expenses, but of that Cahill denied only $32,000 worth.

Lynn Rossman Faris, lead lawyer for the California drivers, said Cahill's tentative order came out Oct. 10 and that the two sides agreed on some changes last Friday. She said the final order will be issued this Friday and be subject to a court hearing Dec. 5.

Lawyers in the case are also representing drivers in dozens of other similar cases in about 40 states, which have been consolidated in a federal lawsuit in South Bend, Ind. They said more than 27,000 current and former drivers have been notified of the lawsuits and fewer than 150 have opted not to take part.

Shares of Memphis, Tenn.-based FedEx rose $1.61, or 2.6 percent, to finish at $64.16 on Monday.