FedEx Fined for Misclassifying Employees as Independent Contractors

The Internal Revenue Service has fined FedEx $319 million for misclassifying employees as Independent Contractors. For years, FedEx has treated its drivers at FedEx Ground as Independent Contractors despite several rulings that found the drivers to be employees of FedEx.

What is an Employee?



Employees are under the control of the company they work for. They are told what to wear, when to show up for work, when they can take their vacation. Employees can be fired at will; there is no contract in place that guarantees they will get paid for the job if they are fired before the job is completed.
Employees can't hire someone else to go to work for them. Employees also perform jobs that are key to the employer's business.

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