The lawsuit is about whether FedEx Ground misclassified pick-up and delivery contractors as independent contractors rather than as employees, and failed to provide them with legal rights that employees have under Louisiana law. On behalf of all contractors in Louisiana, Plaintiffs sought compensation for, among other things, illegal wage deductions and unreimbursed employment expenses. FedEx Ground maintains that the independent contractor classification is appropriate and denies that it has broken any laws.
In 2009, the Court allowed the lawsuit to be a class action on behalf of contractors in Louisiana for claims pertaining to violation of La. R.S. § 23:963, civil fraud, and breach of the duty of good faith and fair dealing and a state-wide subclass as to the claim for failure to timely pay wages on termination. In December 2010, the District Court overseeing the case ruled Louisiana contractors were independent contractors and subsequently, Plaintiffs appealed that decision to the United States Court of Appeals for the Seventh Circuit. While on appeal, the case was mediated and the parties subsequently entered into an agreement to settle this action.