FedEx Fined for Misclassifying Employees as Independent ContractorsThe 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.
- The National Labor Relations Board has ruled five times since 2001 that drivers are employees
- A California state judge ruled in 2004 that drivers are employees
- A Federal Court in Washington state ruled in 2005 that drivers are employees
- A California Appeals Court reaffirmed the 2004 California ruling in 2007
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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