Court rules FedEX Ground contractors are employees

Crazynuff

Veteran Expediter
FedEx Ground workers in CA had filed suit to be classified as employees rather than independant contrtactors due to the control placed on them . CA courts ruled in their favor and gave FedEX 180 to change the conditions to keep from classifying them as employees . This has been a controversy with many o/o's in the trucking industry for years . If the company has complete control over the truck and driver the driver is an employee .
http:/businessweek.com/magazine/content/05_48/b3961086.htm
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
RE: Court rules FedEX Ground contractors are emplo

This is good news for the employee-like contractors that have been running for FedEx Ground since its inception. FedEx Ground and its method of operation, however, should not be confused with FedEx Custom Critical, nor most any other major expedite carrier. We expediters have a somewhat muddy line between employee and independent, but I believe that most of our carriers have done a good job of distancing themselves from us in the strict interpretation of IRS regulations.
 

Crazynuff

Veteran Expediter
RE: Court rules FedEX Ground contractors are emplo

True , Expediters have the right to pick and choose their loads , time off , etc. as do many other o/o's throughout the industry . FedEx bought Roadway Package Express and made it FedEx Ground . They thought they had a good deal and it was very profitable . It'll be interesting to see what they come up with as a solution.
 

ATeam

Senior Member
Retired Expediter
To update this thread and keep the time line complete for readers who may refer to this thread in the future, here is the latest development:

"MEMPHIS, Tenn. – April 21, 2009 – FedEx Ground, a subsidiary of FedEx Corp., (NYSE: FDX), won a United States Court of Appeals for the D.C. Circuit decision today that said FedEx Ground independent contractors are independent business owners – not employees -- and are outside the jurisdiction of the National Labor Relations Board (NLRB). This decision validates the company’s long-standing position that FedEx Ground contractors are small business owners."

Full text of the FedEx statement
 
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