On May 12, 2017, Clifton Cunningham and Don Teed, mechanics who work at Federal Express Corp. (FedEx), filed a nationwide class action lawsuit alleging that FedEx violated the pension rights of thousands of its employees who took military leave to serve in the National Guard and Reserves. Cunnigham and Teed alleged that since 2002 FedEx mechanics and other employees who regularly earn overtime pay or otherwise have wages that fluctuate have been deprived of pension contributions mandated by the federal Uniformed Services Employment & Reemployment Rights Act (USERRA).
On August 8, 2017, FedEx filed a motion to dismiss the lawsuit. The motion to dismiss is pending.
The Cunningham class action lawsuit followed a May 10, 2017 decision by the U.S. Court of Appeals for the Sixth Circuit that held the formula FedEx had applied to make pension contributions for another mechanic who took military leave is “at odds” with federal law. Savage v. Federal Express Corp., 856 F.3d 440 (6th Cir. 2017).
In October 2017, the parties agreed to stay the case to explore the possibility of settling the case. The case will be stayed at least through March 2017.