Key takeaways
- One brand, several operating companies. The express side has historically used employees driving company vehicles. The ground side has used contracted businesses since its origins, and those businesses employ the drivers and own the vehicles.
- Three federal appellate decisions have addressed driver classification, applying the law of three different states. In 2014 the Ninth Circuit held ground drivers were employees as a matter of law under California law, and reached the same result under Oregon law the same day. In 2015 the Eleventh Circuit revived a similar claim under Florida law.
- The contracting model was then restructured. Industry reporting describes a shift to a service provider model requiring contractors to run multiple routes at scale, and ties that change directly to the classification litigation.
- Restructuring does not settle vicarious liability. Those decisions were about employment rights, not crash liability, and a newer contract does not stop a court examining how the work is actually directed.
This guide is written and reviewed by our editorial team to be accurate and current. It is general information, not legal advice, and reading it does not create an attorney-client relationship. Court decisions are cited to the reported opinions. Descriptions of operating structure come from industry reporting rather than company documents, are given in general terms, and change over time. Nothing here asserts that any company is liable for anything. If you are facing an emergency, call 911.