A Major Setback For FedEx!

This March, class certification was awarded by an Indiana Judge in the U.S. District Court including drivers from 18 states, with California and New York among those states. These two states are very significant because they tend to be the leaders of change with other states often following their lead. Although the class certification was limited to class and sub-class for state laws, the certification did not include FMLA claims. Not all states were granted this motion. Massachusetts, Michigan and Virginia were denied inclusion.

Although a final ruling has yet to be rendered it is important to note the dollars at stake with this move has gone up literally overnight. FedEx risks to lose hundreds of millions of dollars and the number of litigants in this case hovers around 12,000. Think about it... these numbers don't even include what the IRS will assess when it finishes its own audit.

As the rest of the nation watches and waits, the heat is being turned up on FedEx and the dollars climb closer to around a billion of dollars. I can't help but to point out "pay now or pay later". Sometimes it's cheaper in the long run to err on the side of caution and either hire them as full time or outsource to a payroll company.