Fed_Ex_2011_annual_report - An excerpt from FedExs 2011...

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An excerpt from FedEx’s 2011 Annual Report Footnote 17: Contingencies Independent Contractor — Lawsuits and State Administrative Proceedings. FedEx Ground is involved in numerous class–action lawsuits (including 30 that have been certified as class actions), individual lawsuits and state tax and other administrative proceedings that claim that the company’s owner–operators should be treated as employees, rather than independent contractors. Most of the class–action lawsuits were consolidated for administration of the pre–trial proceedings by a single federal court, the U.S. District Court for the Northern District of Indiana. The multidistrict litigation court granted class certification in 28 cases and denied it in 14 cases. On December 13, 2010, the court entered an opinion and order addressing all outstanding motions for summary judgment on the status of the owner–operators ( i.e. , independent contractor vs. employee). In sum, the court has now ruled on our summary judgment motions and entered judgment in favor of FedEx Ground on all claims in 20 of the 28 multidistrict litigation cases that had been certified as class actions, finding that the owner–operators in those cases were contractors as a matter of the law of the following states: Alabama, Arizona, Georgia, Indiana, Kansas (the court previously dismissed without prejudice the nationwide class claim under the Employee Retirement Income Security Act of 1974 based on the plaintiffs’ failure to exhaust administrative remedies), Louisiana, Maryland, Minnesota, New Jersey, New
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