The Court of Appeals for the Ninth Circuit in California, reversing a California District Court, has held that FedEx drivers in California are employees, not independent contractors under California’s “right to control” test. The tests used to evaluate whether a worker is an employee or independent contractor are generally comprised of 10 factors. One of the principal tests is whether the person/company to whom the service is rendered has the right to control the manner and means of accomplishing the result desired. If the person/company to whom the service is rendered to has the right to control, then it will most likely be an employee relationship rather than an independent contractor relationship. The Court of Appeals found that FedEx had the right to control its drivers, noting that FedEx controls the appearance of its drivers and their vehicles, the times its drivers work, and aspects of how and when its drivers deliver their packages. To read the court decision in its entirety, please click here.
FedEx Drivers in California Held to be Employees
About the Author: Ted Krejdovsky
Ted is a principal at Bregante + Company LLP, working primarily with closely held businesses that require a combination of financial accounting and tax services, including preparation of full disclosure compilations and reviews for those clients that need financial statement services.