Explain whether there is any way in which FedEx could restructure the Operating Agreement

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Explain whether there is any way in which FedEx could restructure the Operating Agreement

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Explain whether there is any way in which FedEx could restructure the Operating Agreement to avoid the conclusions reached by the court in this case?

Answer & Explanation (1)

Explanation
REFERENCES

FedEx worker entitled to pay for military leave: Court. (n.d.). Business Insurance. https://www.businessinsurance.com/article/20210811/NEWS06/912343820/FedEx-worker-entitled-to-pay-for-military-leave-Court,-Gerard-Travers-v-Federa

Answer
ANSWER

A federal appeals court decided Tuesday that a Federal Express Corp. employee is entitled to be compensated for his military reserve leave, overturning a previous court's decision.

According to the judgment in Gerard Travers v. Federal Express Corp. by the 3rd U.S. Circuit Court of Appeals in Philadelphia, Gerard Travers, who served in the United States Navy and the Naval Reserve, works for FedEx and fulfills his reserve obligations during his time off.

According to the judgment, Mr. Travers was not compensated by FedEx for his absences since the firm does not pay employees for military leave, although it does pay employees who miss work for other reasons such as jury duty, sickness, or bereavement.

Mr. Travers challenged the program in federal court in Philadelphia, using the Uniformed Services Employment and Reemployment Rights Act of 1994. FedEx prevailed in the district court.

A three-judge appeals court found that Mr. Travers had articulated a claim under USERRA, which it described as "a legislation with a long history of safeguarding the jobs and associated benefits of Americas summoned to our common defense."

In remanding the case to the lower court, the decision stated, "Best interpreted, USERRA does not enable employers to treat service members differently by compensating employees for some types of leave while exempting military service."

In Eric White v. United Airlines Inc., a three-judge panel of the 7th U.S. Circuit Court of Appeals in Chicago overruled a lower court judgment and declined to dismiss a lawsuit brought by a reserve pilot who sued the company for paid military leave.

The Third Circuit today joined the Seventh Circuit in stating that when military members and other employees take vacation, federal law guarantees complete equality. The employers' arguments on this point have now been reviewed by six appellate judges, all of whom have flatly rejected them.

A request for comment from FedEx attorneys was not returned.

In July, a federal appeals court overturned a lower court judgment in favor of a railroad in a lawsuit brought by a former employee who accused the company of breaching USERRA when he returned to work after a deployment.

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