(Bloomberg) — FedEx Corp. drivers will have to start over in a fight over their employee status in Missouri.
A federal appeals court said on Friday that a trial judge improperly ruled that the drivers weren't independent contractors and should've left the issue to a jury to determine.
A jury awarded thousands of dollars in back benefits to the drivers in April 2014, after the federal judge determined their status. That was something the U.S. Court of Appeals in St. Louis declined to tackle.
"That issue is not before us," the appeals court said. "There remains a genuine dispute as to whether plaintiffs were employees or independent contractors. That issue should have been submitted to the jury."
Drivers throughout the country have filed claims against the company, which have been consolidated in a federal case in Indiana. Laws of each state, however, determine the employee- contractor issue, the appellate court said.
The ruling gives the company a chance to defend anew what had been a core component of its business model. The decision comes as some drivers for ride-sharing services Uber Technologies Inc. and Lyft Inc. are also fighting in court to be treated as employees rather than contractors.
FedEx drivers typically enter into one or two-year contracts with the company, provide their own trucks and are free to sell their routes, the appellate court said.
A jury needed to make fact determinations, including how much control the company had over the drivers, the duration of the employment, the conditions under which the contract could be terminated, and who provided the equipment to the driver, the panel said.
The trial case is Gray v. FedEx Ground Package System, Inc., 4:06-cv-00422, U.S. Court of Appeals for the Eighth Circuit (St. Louis, Missouri). The appeals case is Gray v. FedEx Ground Package System, 14-3232, U.S. Court of Appeals for the Eight Circuit.
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