Alexander v. Fedex Ground Package System, Inc.

I. Background

A. Factual Background

Named plaintiffs represent a class comprising approximately 2300 individuals who were full-time delivery drivers for FedEx in California between 2000 and 2007. Plaintiff class members worked for FedEx’s two operating divisions, FedEx Ground and FedEx Home Delivery. FedEx Ground deals primarily with business-to-business deliveries, while FedEx Home Delivery deals primarily with residential deliveries. The differences between the two divisions do not matter to this appeal.

FedEx characterizes its drivers as independent contractors. FedEx’s Operating Agreement (“OA”) governs its relationship with the drivers. The OA’s “Background Statement” provides:

[T]his Agreement will set forth the mutual business objectives of the two parties . . . but the manner and means of reaching these results are within the discretion of the [driver], and no officer or employee of FedEx . . . shall have the authority to impose any term or condition on [the driver] . . . which is contrary to this understanding.

A provision of the OA titled “Discretion of Contractor to Determine Method and Means of Meeting Business Objectives,” states:

[N]o officer, agent or employee…

with whom GOODWIN, Circuit Judge, joins, concurring:

The resolution of this case as a matter of granting summary judgment to the drivers is far from simple, as the length and complexity of Judge Fletcher’s meticulous opinion demonstrates. It has not been made easier by FedEx’s brief, which, by quoting part of a sentence from an admission — but not all of it — creates a rosier picture of the drivers’ state of mind than the record supports.

FedEx represents in its brief, and I quote, that each of the drivers personally “intended to enter an independent contractor relationship with [FedEx].” What the brief omits are the important words that precede this language and the final sentence in the drivers’ response. This is what the drivers admitted:

Response to Request for Admission No. 1 (emphasis supplied). The meaning of this response read as a whole is that the drivers believed they were becoming true independent contractors, but the reality they encountered was different.

We also find the actual meaning of the drivers’ “admission” in this case in a companion case, Slayman v. FedEx Ground Package System, Inc., Nos. 12-35525 and 12-35559. In that case, drivers pursued a personal…

Opinion by Judge W. FLETCHER; Concurrence by Judge TROTT.

OPINION

As a central part of its business, FedEx Ground Package System, Inc. (“FedEx”), contracts with drivers to deliver packages to its customers. The drivers must wear FedEx uniforms, drive FedEx-approved vehicles, and groom themselves according to FedEx’s appearance standards. FedEx tells its drivers what packages to deliver, on what days, and at what times. Although drivers may operate multiple delivery routes and hire third parties to help perform their work, they may do so only with FedEx’s consent.

FedEx contends its drivers are independent contractors under California law. Plaintiffs, a class of FedEx drivers in California, contend they are employees. We agree with plaintiffs.

I. Background

A. Factual Background

Named plaintiffs represent a class comprising approximately 2300 individuals who were full-time delivery drivers for FedEx in California between 2000 and 2007. Plaintiff class members worked for FedEx’s two operating divisions, FedEx Ground and FedEx Home Delivery. FedEx Ground deals primarily with business-to-business deliveries, while FedEx Home Delivery deals primarily with residential deliveries.…