Aug 27 (Reuters) - A U.S. appeals court on Wednesday concluded that FedEx Ground drivers in California and Oregon are employees and not independent contractors, and can therefore pursue their claims of unpaid wages and benefits under state and federal labor laws.
The decision by a three-judge panel of the 9th U.S. Circuit Court of Appeals, sitting in Portland, Oregon, reversed a lower court's ruling and would allow the drivers working for FedEx Ground, a subsidiary of FedEx Corp, to move forward with their lawsuits.
The appeals court noted that the claims brought by the California and Oregon drivers are among similar cases filed against FedEx in approximately 40 states.
FedEx said on Wednesday that it will challenge the decision.
"We fundamentally disagree with these rulings, which run counter to more than 100 state and federal findings ... upholding our contractor relationships with thousands of independent businesses," FedEx Ground Senior Vice President and General Counsel Cary Blancett said in a statement.
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Although FedEx uses an operating agreement that states its drivers are independent contractors, the appeals court panel noted that the drivers wear FedEx uniforms and drive company-approved vehicles. It also said that FedEx tells them what packages to deliver and where and when to deliver them.
