Many individuals know that there is a difference between employees and independent contractors. In many cases, independent contractors do not receive many of the same benefits that full-time employees are entitled to. As a result, employers may misclassify their workers in an attempt to avoid supplying certain benefits. Consequentially, misclassified workers can miss out on wages and other incentives that they should be receiving.
A similar case involving FedEx delivery drivers in California and another state was recently allowed to move forward. It was reported that these drivers had been classified as independent contractors, and therefore did not qualify for certain benefits. However, a court recently overturned the ruling that this classification was correct.
The facts that drivers must wear a company uniform, drive company vehicles and are told when and where to deliver packages were cited as reasons behind the decision to overturn the classification. The case encompasses thousands of former drivers who believe they should have been entitled to overtime pay and benefits. At this time, FedEx has stated that they disagree with the rulings.
As this case shows, misclassified workers can miss out on important incentives. The workers and former workers covered in this case could potentially receive compensation should the ruling uphold that they were employees and not independent contractors. Individuals in California who are concerned about their employment classification may wish to find out more about their situation and if they could potentially be misclassified. If they believe they should be receiving overtime pay or other benefits, they may wish to consider filing a claim.
Source: Yahoo News, “U.S. court clears FedEx Ground drivers to pursue wage, benefit claims“, Amanda Becker, Aug. 27, 2014