Originally Posted by
vagabond
The IRS issued a ruling for 2002 only. The billion dollar amount is what could be owed if all subsequent years are counted in the same way. Class action lawsuits are separate and filed in different jurisdictions.
FedEx was wrong to classify the drivers as independent contractors, but it was a brilliant move on its part to save untold amounts of money over the years. This scheme (and the use of the word is an understatement) reminds me of Enron. A not-so-ethical lawyer friend of mine once said:"now why didn't I think of that first?"
I agree it was a brilliant move to save money classifying drivers as independent contractors, but if they get sued by employees to get all this money back.....is it really that brilliant? Seems like it could create some bitterness in the long run?