Work Truck Logo
MenuMENU
SearchSEARCH

Driver Fight Could Force FedEx to Maintain Own Truck Fleet

At issue is independent-contractor system. Drivers argue they are so tightly controlled they should be considered employees and receive company benefits. FedEx says system keeps shipping prices competitive.

by Staff
July 28, 2005
2 min to read


The FedEx labor fight with 14,000 drivers could raise operating costs by millions and lead to an overhaul of its workforce, according to a story July 26 in the Memphis Commercial Appeal. The drivers are independent contractors who own the trucks, pay all operating costs and get no company benefits. Drivers in Tennessee, California, Massachusetts, Minnesota, South Dakota and elsewhere are suing FedEx. They argue the company skirts worker protection laws by refusing to hire them as employees eligible for overtime pay, health insurance, workers' compensation and other benefits. They also want to be reimbursed for back operating expenses and lost benefits. A victory by the drivers would raise employee costs and force FedEx Ground to maintain its own fleet of trucks, University of Memphis business professor David Ciscel said in the Commercial Appeal article. Spokesman Perry Colosimo said FedEx Ground is confident it can win in court and has no intention of changing the way it does business. The independent-contractor system, he said, keeps shipping prices competitive and allows the drivers to run their own small businesses. The drivers say FedEx controls just about everything they do - the hours they work, where and when they pick up or deliver packages, how they maintain their trucks, even how they dress. FedEx also prohibits drivers from using their trucks to carry non-FedEx shipments. The arguments center on how much independence contractors have, the article said. If work is too tightly controlled, courts can order employers to hire them with the same benefits and legal protections other company workers enjoy. Many companies run into legal trouble when they try to categorize workers who should be on regular payrolls as temporary employees or independent contractors. FedEx went head-to-head with UPS in 1998 when it bought several trucking operations, including RPS Inc. which later became FedEx Ground. RPS had relied on contract drivers since its creation in 1985. Drivers for UPS are company employees driving company-owned trucks.

More Small Fleet

Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
 Drivers in a safety meeting at Wheelz Up
Small Fleetby Amy HercherJuly 14, 2026

Developing Budget-Friendly Driver Safety Programs

From driver training and safety meetings to one-on-one coaching and incentive programs, several small fleets share how they have developed a safety culture with their drivers using low- to no-cost resources.

Read More →
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Ad Loading...
SponsoredMarch 9, 2026

Boosting Last-Mile Fleet Uptime, Safety, and Value with AI Vehicle Inspections

AI-powered inspections are transforming last-mile fleets by replacing manual checks with highly accurate automated scans that detect defects in seconds. By giving fleet operations visibility into the daily condition of their vehicles, you can identify trends over the vehicle’s lifecycle that enable improved procurement decisions, route management, driver training and accountability.

Read More →
SafetyFebruary 4, 2026

Five Ways Seat Belts Help Prevent Injuries

There are five ways seat belts protect occupants from injuries, according to the Tennessee Department of Safety and Homeland Security.

Read More →
SponsoredJanuary 14, 2026

It’s here: The 2026 Fleet Technology Trends Report

What does AI mean for fleets? Get the answer — and learn other top tech trends.

Read More →
Ad Loading...
Wreaths Across America graphic highlighting the role of small fleets in delivering wreaths to honor veterans, featuring wreath icons and the American flag.
Small Fleetby Lauren FletcherDecember 8, 2025

Small Fleets, Big Impact: How Independent Drivers Power Wreaths Across America

Check out how small fleets and independent drivers power Wreaths Across America each December and why their impact matters more than ever.

Read More →
A stressed person covers their face, illustrating that 65% of small fleet managers handle all operations alone, according to a Vehicle Management Systems (VMS) survey.
Small Fleetby StaffNovember 12, 2025

VMS Survey Finds 65% of Small Fleet Managers Run Operations Alone

A new VMS survey shows small fleet managers are stretched thin, with most handling operations solo and eager to adopt digital tools for relief.

Read More →
Safe Driving on Halloween over spooky fall road
Safetyby StaffOctober 20, 2025

Tips for Driving Safely on Halloween Night

This video features a reminder from the Connecticut Department of Transportation (DOT) and the Connecticut Police Chiefs Association, urging drivers to prioritize safety this Halloween.

Read More →
Ad Loading...
VMS Co-CEO David Prusinski highlights the company’s AI-powered virtual fleet manager designed to improve uptime and reduce operating costs for fleets.
Green Fleetby Lauren FletcherOctober 6, 2025

AI, Access, and Uptime: VMS’s Next Chapter with David Prusinski

VMS’s new Co-CEO, David Prusinski, shares how an AI-first approach will give small fleets and repair shops the tools to compete like big players.

Read More →