Friday, November 21, 2014

The FedEx driver who sued and won

Reggie Gray thought working for FedEx was his ticket to a better life.

It turned out to be anything but: His years as a driver for FedEx Ground ended with him filing for bankruptcy and taking the company to court.

Gray is one of the thousands of FedEx (FDX) drivers who have sued the company for classifying them as contractors, rather than employees. Many, including Gray, have won.
"We all signed up for what we thought was the American dream," said Gray. "We received the exact opposite. It was a really bad deal."

The FedEx Ground division, created in 2000, delivers small packages to homes and businesses nationwide. But its army of 32,500 uniformed drivers, managers and affiliated workers are classified as contractors, a controversial policy that allows FedEx to save on health benefits, unemployment insurance, retirement accounts and overtime pay, among other things.

"This is an intentional policy on the part of FedEx Ground to deny drivers their rights as employees," said Erin Johansson, research director at Jobs with Justice, a labor rights group. Read more on CNN Money

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