Roy v. FedEx Ground Package Systems, Inc.

District Court, D. Massachusetts·Decided March 29, 2024·No. 3:17-cv-30116·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

JORDAN ROY and JUSTIN ) TRUMBULL, on behalf of themselves ) and others similarly situated, ) ) Plaintiffs, ) ) v. ) Case No. 3:17-cv-30116-KAR ) FEDEX GROUND PACKAGE ) SYSTEMS, INC., ) ) Defendant.

MEMORANDUM AND ORDER ON DEFENDANT’S MOTION TO DECERTIFY THE FLSA CONDITIONAL COLLECTIVE (Dkt. No. 347) ROBERTSON, U.S.M.J.

This Fair Labor Standards Act (“FLSA”) collective action is before the court on the motion of defendant FedEx Ground Package Systems, Inc. (“FedEx”) to decertify the conditionally certified collective. The named plaintiffs in this putative collective action, Jordan Roy and Justin Trumbull, who represent themselves and others who are allegedly similarly situated (collectively, “Plaintiffs”), claim that Plaintiffs were jointly employed by FedEx and the Plaintiffs’ respective Independent Service Providers (“ISP”) to deliver packages in Massachusetts and that FedEx violated the FLSA by failing to compensate them for overtime. Plaintiffs have opposed FedEx's motion for decertification (Dkt. No. 375). The parties have consented to this court’s jurisdiction (Dkt. No. 9). See 28 U.S.C. § 636(c); Fed. R. Civ. P. 73. For the reasons that follow, FedEx’s motion is GRANTED. I. BACKGROUND FedEx is a federally registered motor carrier that provides package pick-up and delivery services to business and residential customers throughout the United States (Dkt. No. 348-12 ¶¶ 4, 5).1 Under its current business model, FedEx contracts with ISPs who employ drivers to provide the last mile package pick-up and delivery services between FedEx stations and local residences or businesses (Dkt. No. 348-12 ¶ 5).

All ISPs operate under separate Independent Service Agreements (“Agreement”) with FedEx (Dkt. No. 348-12 ¶ 8). Each Agreement consists of the same base contract and various attachments, schedules, and amendments to the base contract that contain negotiated terms, including the amount FedEx will pay the ISP per stop, per pick-up, and per package, the daily service threshold, and the length of the Agreement (Dkt. No. 348-12 ¶¶ 8, 9; Dkt. No. 348-12 at 15-78; Dkt. No. 376-6 at 21). FedEx and the ISPs also negotiate whether the ISPs will participate in FedEx’s voluntary brand promotions programs and, if so, the amount the ISPs will receive as a bonus for their participation (Dkt. No. 348-12 ¶ 10). In return for additional payments from FedEx, ISPs that join FedEx’s brand promotion program display FedEx’s logo on

some or all of their vehicles and/or have their drivers wear FedEx-branded clothing (Dkt. No. 348-12 ¶ 10). Each base contract states that the ISP is the drivers’ employer and that the ISP “has discretion over how it operates its business and how it pays its employees with the caveat that the [ISP] must comply with federal, state, and local laws” concerning the payment of wages, required withholding, deductions, record keeping, and overtime (Dkt. No. 348-12 at 17 § 1.1(C), at 19 § 6.2, at 20 § 6.4; Dkt. No. 376-3 ¶ 5). Under their contracts with FedEx, the ISPs agree to

1 Citations to the page numbers in pleadings are to the numbers assigned by the court's ECF system except that deposition transcript pages are referenced by their transcript page numbers. provide driver payroll and employment records on request to FedEx’s compliance investigators who conduct random and targeted standardized assessments to determine whether the ISPs are complying with their obligations to follow the applicable wage and hour (and other) laws (Dkt. No. 348-12 ¶ 23; Dkt. No. 348-12 at 19 § 6.2(C) & (E); Dkt. No. 376-3 ¶¶ 6, 7, 8, 9; Dkt. No. 376-7 at 15). Otherwise, FedEx does not possess or maintain payroll records for drivers working

for ISPs (Dkt. No. 348-12 ¶ 24). The compliance investigators produce a Compliance Investigation Report (“CIR”) at the conclusion of the examination of an ISP if there is a concern about the ISP’s compliance with the terms of the Agreement (Dkt. No. 376-7 at 26). If an ISP fails to comply with the Agreement’s wage and hour law requirements, including payment of overtime, or some other requirement in the Agreement, FedEx may issue a Notice of Compliance Concern or Notice of Opportunity to Cure (Pls. Ex. I). FedEx can terminate an Agreement if an ISP fails to comply with its terms (Dkt. No. 348-12 at 19 § 6.2, at 27 § 15.3; Dkt. No. 376-5 at 101-02). FedEx establishes the days of the week when the ISPs will perform package pick-up and

delivery services according to an Agreement’s detailed specifications (Dkt. No. 348-12 at 39 §§ 1, 2, at 43 §§ 1, 2, at 44-45 §§ 5, 6). To provide the pick-up and delivery services, the ISPs agree that their drivers will use FedEx’s “two-way cellular/satellite communication devices and certain associated equipment (‘[s]canners’) as the primary means of recording the Customer required signatures of recipients and tracking package location and status for Customers” (Dkt. No. 348- 12 ¶ 27; Dkt. No. 348-12 at 25 § 9.2, at 45-46 § 8). In addition to documenting the package delivery information for FedEx, as relevant here, the scanners record the following information (“scanner data”) for each delivery driver: the date; the destination terminal; the vehicle number; the ISP’s name; the on-duty (log-in) time; the dispatch or start time; the final stop time; the return home time; and the off-duty (log-off) time (Dkt. No. 348-12 ¶ 29; Dkt. No. 376-38 ¶ 4). The scanner data immediately uploads to servers maintained by FedEx (Dkt. No. 348-12 ¶ 28). FedEx uses the drivers’ on-duty and off-duty times to monitor compliance with the Department of Transportation’s hours of service regulations (Dkt. No. 348-12 ¶ 29). See 49 C.F.R. § 395.3. A separate FedEx database, called the Vehicle Management System (“VMS”), contains the

vehicle numbers and the gross vehicle weight ratings (“GVWR”) for the vehicles owned by FedEx and the ISPs (Dkt. No. 348-9 ¶ 5; Dkt. No. 376-38 ¶ 8). In August 2017, named Plaintiffs, acting on behalf of themselves and other similarly situated persons, brought a single claim against FedEx, their alleged joint employer, for unpaid overtime pursuant to the FLSA (Dkt. No. 1). See 29 U.S.C. § 207(a)(1). On November 27, 2018, this court conditionally certified a collective of similarly situated individuals who delivered FedEx’s packages in Massachusetts after February 19, 2015, using vehicles with GVWRs of less than 10,001 pounds, who were paid by the ISPs to perform delivery services on FedEx’s behalf, and who were not paid overtime compensation for all hours worked over forty

each week. See Roy v. FedEx Ground Package Sys., Inc., 353 F. Supp. 3d 43, 72 (D. Mass. 2018). The court authorized the issuance of notices to potential members of the proposed collective. See id. at 76. Approximately 554 opt-in plaintiffs submitted consent forms affirming that they drove a vehicle with a GVWR under 10,001 pounds, worked more than forty hours per week, but “to the best of [their] knowledge” were not paid overtime for the hours that exceeded forty hours in a workweek (Dkt. Nos. 85-1, 87-1, 88-1, 89-1, 90-1, 91-1, 96-1). Those opt-ins were hired by approximately 160 ISPs and operated out of some twenty-four different FedEx stations in Massachusetts (Dkt. No. 348-12 ¶ 7). The parties agreed on the format and content of a questionnaire that was completed by the named Plaintiffs and fifty opt-ins that FedEx selected (Dkt. No. 118; Dkt. No. 121; Dkt. No. 375 at 27).

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Roy v. FedEx Ground Package Systems, Inc., (D. Mass. 2024).

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