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Old 07-11-2005, 09:25 AM   #1  
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Default contract drivers suing FedEx

Posted on Sun, Jul. 10, 2005


Contract drivers sue FedEx

By Woody Baird
Associated Press

MEMPHIS, Tenn. – FedEx delivery drivers argue in a federal lawsuit that the company so tightly controls their work that they should be employees rather than independent contractors.

The U.S. District Court suit is similar to lawsuits filed by FedEx drivers or former drivers in other states accusing the company of denying them overtime pay, health insurance, workman’s compensation coverage and other benefits provided for company employees.

The Memphis suit, which seeks to represent more than 1,000 drivers in Tennessee, says that although they must buy their own trucks, FedEx regulates the smallest details on how they are used, maintained and even painted.

The drivers, wearing uniforms purchased from FedEx, are told what packages to deliver and when to deliver them, and they can be assigned deliveries off their regular routes any time the company desires, plaintiff’s lawyer Joree Brownlow said Wednesday.

“They are in fact treated like employees,” Brownlow said.

Eight Memphis-area drivers who filed the suit June 22 say they are denied the work independence enjoyed by private contractors as well as the employee protections provided by Tennessee law.

Last edited by HSLD; 11-30-2005 at 11:12 PM.
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Old 07-11-2005, 09:58 AM   #2  
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Seems like FedEx would have a legal team that was familar with the Microsoft case (microsurfs). From the sounds of it, the IC's will win.

One of the most basic tests for IC's is: Did the the company mandate HOW the job was done, or just the completion standards? This is what the IRS looks at when they feel companies are looking to avoid paying payroll taxes etc. It's up to the the IC on how they prepare and how they do the job, the company doesn't have a lot of leeway outside of dictating completion standards.

I'll bet FedEx will lose this one.
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Old 07-12-2005, 10:51 AM   #3  
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Quote:
Originally Posted by Diesel 10
or Home Delivery van/truck stops by they're actually being serviced by a contractor. Just like Airborne, and unlike UPS.
Are the home delivery routes that deliver next-day air packages also IC’s, or are they employees?

I have a friend who recently bought a FedEx Ground delivery route (formerly Roadway). I asked him, since he’s an owner and a one-man show, what happens if he’s sick or has a family emergency? He said, “they get someone else to cover it.”

I doubt that “someone else” makes any more money that day (but I really don’t know).

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Old 11-30-2005, 07:48 PM   #4  
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Quote:
Originally Posted by WatchThis!
Seems like FedEx would have a legal team that was familar with the Microsoft case (microsurfs). From the sounds of it, the IC's will win.

One of the most basic tests for IC's is: Did the the company mandate HOW the job was done, or just the completion standards? This is what the IRS looks at when they feel companies are looking to avoid paying payroll taxes etc. It's up to the the IC on how they prepare and how they do the job, the company doesn't have a lot of leeway outside of dictating completion standards.

I'll bet FedEx will lose this one.
More information is available at http://fedexaminer.com/FedEx/

You would not believe the control that FedEx has over these "contractors". FedEx even takes away parts of their route that the driver purchases on a whim according to what some are posting at the link above. I believe there are now more than 12 class action suits filed so it is going to cost FedEx a bundle if they continue to loose like in California. An injunction has already been issued in CA after FedEx lost their appeal and FedEx has 6 months to make the "contractors" employees. FedEx is still refusing...
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