California EDD Audit Upheld at Court of Appeals - May 18, 2007

A California Employment Development Department audit of UPS subsidiary Sonic Air that determined the company's drivers were wrongly classified was recently upheld at the California Court of Appeals.  The case is a predecessor to FedEx Ground's similar case against the EDD for its audit determination.

The Sonic Air case has run the gauntlet ; two appeals at the California Unemployment Insurance Appeals Board, an appeal before the Sacramento County Superior Court and an appeal before the California Court of Appeals.  The EDD audit withstood all challenges.

When one compares and contrasts the Sonic Air case with the FedEx Ground case , at least in California, the only conclusion can be that FedEx Ground will ultimately be on the losing side.  Again.