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.Why are FedEx Drivers Ruled as Employees?
Some of the facts that led to FedEx Ground drivers being ruled as employees include:
- FedEx unilaterally sets the terms of employment in its Operating Agreement
- FedEx can change the drivers' routes at will without input from drivers
- FedEx drivers cannot get other drivers to cover their routes for them without FedEx consent
- FedEx drivers cannot take a day off without permission without risking being fired
- FedEx drivers are required to wear a FedEx uniform and drive a truck with FedEx markings
- FedEx could not operate its business without drivers
- 1. FedEx Fined for Misclassifying Employees as Independent Contractors
- 2. Why do Businesses Misclassify Employees?
- 3. What is an Independent Contractor?
- 4. What is an Employee?
- 5. Why are FedEx Drivers Ruled as Employees?
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