National Misclassification Case Gets Class Certification - October 16, 2007
Well, that didn't take long. On Friday, Judge Miller denied the temporary restraining order requesting he prevent FedEx from firing all single-vehicle drivers in California. So perhaps FedEx lawyers thought they had snapped their losing streak.
They were wrong. On Monday, the same Judge Miller decided the multi-district litigation case can go forward as a class action lawsuit for both the state wage and federal Employee Retirement Income Security Act claims. The whole order is online here - the juicy stuff starts on page 22 following the order including the company's expert report.
The plaintiffs' statutory wage and recission claims are also typical of the putative class members claims' because they arise from the same event - the drivers' classification as independent contractors - and rest on the same theory - that the drivers have wrongfully been denied wages and have paid unjust enrichment to FedEx as a result fo their improper classification udner the operating agreement. The plaintiffs and proposed class members all signed a standard-form operating agreement, so the claims of the plaintiffs have the same essential characteristics as the claims of the class at large.
From these analyses, the court finds that determining whether the drivers are employees under Kansas law will depend upon the amount of control reserved by Fedex and will require a detailed analysis of the standard Operating Agreement. These common questions of law and fact predominate over issues affecting only individual members and so support class certification.
FedEx's treatment of the package and delivery drivers as independent contractors and denial of benefits on those grounds can be fairly characterized as a course of conduct that is "generally applicable" to the proposed class.
The predominate issue for purposes of liability under the FedEx ERISA plans is whether the putative members are eligible employees, and because this issue arises from a common nucleus of facts, it can be demonstrated by common proof and certification is therefore economical and appropriate.