RECENT UPDATE – May 20, 2013
As you know, we have been pursuing a case against Federal Express (“FedEx”) for the past seven (7) years which is still pending in the State court of Pennsylvania. Our claims submitted on your behalf focused on the treatment of “Ground” drivers as independent contractors rather than employees and, as a result, there was a substantial disparity in pay and a concomitant loss of benefits to each driver. Initially, our case was running on an independent track from a class action which addressed some of the same issues. Unfortunately, after our case was transferred to Allegheny County by the Court, the action was stayed until the Class Action was decided. While we opposed the granting of the stay, the Court was unwilling to accept our arguments. As such, the stay essentially prevented us from moving forward and froze the litigation.
Some time ago, the Federal class action was dismissed. The attorneys representing the drivers in that case appealed that dismissal and were referred by the Court to the Kansas Supreme Court for a decision on certain aspects of those claims. As of today, all of the appellate briefs have been submitted by both sides. While we cannot predict when the appeal will be heard or whether it will be successful, we anticipate that a decision will be made within the coming months. Assuming that the decision is favorable to us, we should be able to advance all of our cases at a much more rapid pace. As soon as a decision is made, you will be formally notified.
We understand this has been a difficult experience for all of you. Your patience and cooperation in this regard is appreciated.
The Lawsuit Explained
The FedEx driver lawsuit is a relatively new controversy, and it has arisen because of a technical classification for the group of drivers as a whole. Below you’ll find some of the basic tenets for the FedEx driver lawsuit explained, but if you’d like to find out if you can or should be a part of the FedEx driver lawsuit, contact The Laub Firm P.C. today to schedule a FREE initial consultation.
FOR ADDITIONAL INFORMATION ON CLAIMS INVOLVING FEDEX PLEASE SEE:
Employee or Contractor?
The crux of the issue at the center of the FedEx driver lawsuit is whether or not the drivers in question, and that would be all of them, are classified as contractors or employees. FedEx has always held the position that their drivers are contractors, while drivers are beginning to unite in their claim that they are in fact employees when it comes to their treatment under the tax code and other employment laws.
The Tax Code
There are significant differences between a contractor and an employee in relation to the tax code. Specifically, a contractor does not have taxes withheld from pay check, but that means that he or she must also normally pay a tax bill when it comes time to file the annual tax return. An employee on the other hand, does have taxes withheld from paychecks, but, depending on individual circumstances, will usually not have to pay as much, if anything, to the government every April.
Another significant consideration in regards to the employee vs. contractor dichotomy is the rights that are held by employees. Within certain contexts, employees must be offered benefits, including sick time and health insurance, while a contractor is not paid for time off and is responsible for his or her own benefits and insurance. There are also employee termination rights in place in many situations that are not in existence with contractors.
Overall, there are several issues to consider regarding the FedEx driver lawsuit. If you have questions or feel that you may be a candidate to get involved, contact The Laub Firm P.C. today at (914) 638-1112 for a FREE initial consultation.
Your Legal Rights
Below are just a few items to consider completing in your effort to determine whether or not you should get involved, but for an individualized analysis of your situation, contact the attorneys at The Laub Firm P.C. to schedule a free initial consultation.
Gather Potential Evidence
If you work now or have worked for FedEx in the past, you need to gather as much documentation as you can. Below are a few examples of potentially relevant documentation
- A copy of your job application;
- Any documentation that you received after you began driving for FedEx;
- Any pay stubs;
- Your Past and most recent tax returns;
- Any health Insurance documentation;
- Any correspondence between you and FedEx.
- If you don’t have all of these documents, don’t be concerned – they can be made available later in the process.
After you’ve gathered your documentation, contact the attorneys at the Laub Firm P.C. to schedule a FREE initial consultation. Our Firm will be able to help you determine whether or not proceeding with a claim would be advisable, and we’ll use your evidence and your explanation to collectively come to a decision.
One thing you need to remember is that you only have a certain amount of time to file a claim, so contact The Laub Firm today (914) 638-1112 for a free initial consultation.
Frequently Asked Questions
Q. Why is this controversy arising?
A. FedEx driver lawsuits are beginning to be filed, and to date more than 30 drivers have been officially files, because FedEx has classified drivers as independent contractors as opposed to employees. Drivers around the country are claiming that they should have the same rights as employees, and FedEx is refusing to offer these rights.
Q. What is the basis of the claim or claims?
A. The basis of the claims for these FedEx driver lawsuits is that these drivers should be employees, and among other things, this would entitle drivers to gain potentially significant tax relief. Independent contractors must be responsible for their own taxes at the end of the year, and this can lead to a significant payment attached to a tax return.
Q. Are there other rights at issue?
A. Yes. Employees, aside from the inherent tax advantages, also enjoy benefits that include health and sometimes life insurance, paid vacation time and protection under employment laws that are generally not afforded to independent contractors. It is also much less costly for the employer to use independent contractors as opposed to employees for payroll tax and employee benefits reasons.
Q. I drive/used to drive for FedEx. Do I have a claim?
A. Potentially. If you drive or used to drive for FedEx, you could have a right to bring a FedEx driver lawsuit if you were classified as an independent contractor. The best way to find out is to contact The Laub Firm P.C. today at (914) 638-1112 for a free initial consultation.