Independent Contractor Status

RichM

Veteran Expediter
Charter Member
Yesterday the Boston Globe newspaper had a major story in the business section about some Fedex Ground Contractors that have filed a lawsuit against Fedex Ground claiminmg that in order to abide by their agreements that they are relly employees and not independent contractors. This could have long range effect on a lot of us.
 

Glen Rice

Veteran Expediter
This has been going on for years. I would not read too much into this new lawsuit. I have friends over at that divison and they are not getting the support from the contractors that they thought they would get. Sounds like the only one getting rich out of this action will be the Attorneys! Nothing new there!!
 

ATeam

Senior Member
Retired Expediter
A similar suit was filed in Minnesota a few weeks ago, also by a small group of FedEx Ground contractors. As the Boston Globe article stated, another similar suit had been filed in California and the appeal on that one is pending.

My wife and I have been following this issue for some time now. Even if the Court rules against FedEx Ground in one or more states, we do not believe it would had an adverse impact on our independent contractor status with FedEx Custom Critical - either as drivers for fleet owners or as owner/operators.

The work rules and route assignements cited in the FedEx Ground cases differ significantly from the agreements that FedEx Custom Critical makes with it's contractors. A fact of great importance is that FedEx Custom Critical contractors are permitted to trip lease, as well as accept or decline loads at their pleasure. Also, independent contractor definitions vary significantly from state to state. What may go against FedEx Ground in one state may work in its favor in another.

Expedited freight transport is work that by its very nature cries out for independent contractors. It is hard to imagine any company - union or non-union - that would be willing to dedicate resources to the kind of freight we haul. They would have to keep trucks standing by and employees on the clock just to wait for loads. And once a load is dispatched, the employees would quickly go into overtime on a long haul.

While major companies like Yellow, Schneider, and Old Dominion advertise expedited services, they don't even come close to the truck-available-now, dedicated-truck, and dock-to-dock, services we independent-contractor expediters provide.

Personal opinion, of course.
 

Dreamer

Administrator Emeritus
Charter Member
Just a side note.. I was reading on that lawsuit..and it was brought up on a regular trucking site... one of the major points they're using in claiming to be employees..

Did you know, FedEX ground tells them which finger they are required to have their truck keys on when they are getting their paperwork signed? WOW! I guess it's their safety issue, but they are required to have their keys hooked to the little finger of the non-signing hand. Not in pocket, not on belt.. on little finger!


I know you're supposed to have your keys out of the truck when doing pre-trips, loading, unloading, in fact I remember at least one plant asking me to show them my keys before going on the truck...

But to actually require the keys be on a certain finger... I found that amusing for some reason!

Whatever you have to do to get in the habit of yankin your keys I guess!


Dreamer
 

Broompilot

Veteran Expediter
The nature of this industry will always be Independents. Why? No company will ever pay a driver an hourly wage to wait between loads.

Add in all of the extra expenses and no company would ever be able to keep control of costs incurred by us out there. Simply put make sure you stay profitable its expensive out there.
 

Lawrence

Founder
Staff member
I was an employee at Roadway Package System in 1987, it then became RPS when Caliber Systems bought it - then FedEx bought it and it became FedEx Ground.

I remember from the first year that Roadway started this company - there were always labor disputes - the biggest issue was the Teamsters. They tried real hard to unionize the Cincinnati terminal; fights would break out all time.

They have had these issues for over 17 years. It will be interesting to see if it sticks this time.


Lawrence,
Expediters Online.com


Deja Moo: The feeling that you've heard this bull before.

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davekc

Senior Moderator
Staff member
Fleet Owner
Individuals or groups will not bring this to the forefront for any changes. There will be some changes, but it will be coming from the IRS. Look for upcoming changes as they have already stated that they don't like the way it is structured now. This is to be included in Bush's new IRS tax plan. Fox news says it is suppose to start floating this stuff to the public at the end of the year.
Davekc
 
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