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.

A Cornell University study found that nearly ten percent of the audits conducted by the Department of Labor found that employees were misclassified as Independent Contractors. The misclassification is so widespread that the Governor of New York recently announced an Executive Order creating a task force to address the problem.


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