FedEx Drivers in California Sue for Overtime Pay, Benefits

Shipping giant FedEx Corp. is facing a class action by long-haul and local drivers challenging the company’s position they’re employed by independent service providers.

The drivers claim in their lawsuit filed Dec. 14 in the U.S. District Court for the Northern District of California that they’re FedEx employees entitled to overtime wages and benefits under California law. They claim federal jurisdiction under the Class Action Fairness Act because the estimated damages will exceed $5 million.

FedEx’s past practice was to hire drivers as independent contractors. After years of litigation by drivers challenging that business model, however, FedEx scrapped it for ...