Worker Alleges Company Misclassified Him As Independent Contractor
As the debate over employee classification continues to intensify across the US, a new case has emerged in Pennsylvania. The Pennsylvania Record reports that Pittsburgh FedEx driver Sanel Hodzic has sued FedEx Package System “on behalf of himself and similarly situated individuals,” alleging “wage discrimination” starting in 2012 under violations of the Fair Labor Standards Act. The complaint alleges that “FedEx drivers were intentionally misclassified as independent contractors” so that FedEx could avoid paying “fair compensation.” For example, the suit says drivers “regularly” are working more than 40 hours but don’t receive overtime, contrary to FLSA standards. Citing the Record’s coverage, Post & Parcel reports that the current suit “cites previous cases supporting the claim that drivers are employees and subject to Fair Labor Standards Act violations,” and that this new suit is classified as class action, and would involve “any employees who have worked for the defendant within the past three years.” The suit seeks “monetary damages of unpaid overtime wages, liquidated damages, interest, attorneys’ fees, and court costs.”
What Happens Next
The US District Court Western District of Pennsylvania is set to hear the case, though the specific timeline for a ruling is unclear.
What This Means For Small Businesses
This case has implications for the small business community across Pennsylvania as its outcome may determine whether the issue of worker classification becomes more prominent in public discussions of Pennsylvania businesses. If FedEx loses this case, small businesses may face even more pressure to classify workers as employees rather than independent contractors, meaning they might have to pay workers costly benefits like overtime or paid leave.
Additional Reading
This is not the first case involving FedEx and allegations of worker misclassification, as NFIB previously reported on FedEx’s settlement of a similar case in California.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
