New lawsuit between FedEx Ground and contractors

FreightWaves
FreightWaves
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Published 2023-12-11
FedEx Ground is seeing a lawsuit coming its way concerning the contractors it uses, we’ll have attorney Matt Leffler on to give his take on the situation.
All Comments (4)
  • @armchairatty
    PYNQ Logistics Services, a former contractor for FedEx, has filed a lawsuit in a California federal court accusing the shipping giant of engaging in a systematic pattern of illegal and wrongful business practices that violate U.S. anti-racketeering law. The lawsuit seeks a court determination that PYNQ's relationship with FedEx Ground is that of an employee rather than a contractor. Notably, this is the first time where a former FedEx Ground contractor has sued the company under the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO). PYNQ claims that FedEx's use of contractors allows the company to shift employee and other expenses while controlling labor costs and inhibiting union organizing efforts. FedEx has responded, stating that it is aware of the allegations and will vigorously defend against the lawsuit, emphasizing the potential for a prolonged legal battle if the case evolves into a class action. This is certainly a creative way to try and circumvent FedEx's arbitration agreement.