FedEx Wins Lawsuit Against Employees Who Seek to Claim Overtime Back Wages

In the case of Bachanov v. FedEx Ground, Andrew Bachanov filed a lawsuit against FedEx Ground (FedEx) for failing to pay its drivers overtime wages. Bachanov, a former FedEx driver, claims that he was not properly compensated for the overtime hours that he had worked.

FedEx argued that its drivers were considered exempt from overtime pay under the Colorado Minimum Wage Order that exempts drivers involved in interstate commerce. Bachanov claims that as a driver, he did not cross state lines as his role only included shipments within Colorado.

There were conflicting interpretations on whether this exemption applied only to drivers transporting goods within Colorado but were engaged in interstate commerce. One interpretation considered the physical crossing of state lines while another considered the character of the shipment in nature (whether or not their work contributes to the overall interstate nature of the business).

It was found that the nature of the shipment applies to this case. Meaning that even though Bachanov did not physically cross state lines, his work still contributes to the overall interstate nature of FedEx. Therefore, the drivers were considered exempt from overtime pay.

Ultimately, the court ruled in favor of FedEx and dismissed Bachanov’s claims. The case has been dismissed.

Key lessons from this case:
  • Colorado labor laws will consider the circumstances of each case to determine whether the transportation work qualifies as part of interstate commerce.
  • Drivers performing intrastate (within a state) transportation that contributes to interstate commerce may still be considered exempt from overtime pay.
  • Employees need to be aware of any interpretations within a state that can influence their overtime eligibility.

If you want to know more about overtime regulations, read our guide on Colorado Overtime Laws.

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