Drivers

FedEx Implements New Standards For Contractors

May 25, 2010

SHARING TOOLS        | Print Subscribe
FedEx has sent a letter to about 12,000 independent contractors notifying them of new business standards they must comply with or risk losing their contract, according to published reports.
FedEx contractors have 180 days to comply with the new business standards.
FedEx contractors have 180 days to comply with the new business standards.


FedEx Ground has been in legal and tax battles for years over whether or not its independent contractors are considered company employees. Late last year, the Internal Revenue Service let the company off the hook for two audits related to independent contractor status.

However, contractors can no longer organize as partnerships or sole proprietorships; they are now required to incorporate under state law. Owner-operators are also required to treat their personnel as employees, according to reports by Dow Jones Newswires.

Dow Jones, which obtained the letter to contractors, said the company issued the standards "in response to recent concerns by several states," according to the letter. FedEx confirmed what the letter said, but would not comment on which states took issue with the company's owner-operator model, Dow Jones said.

Last year, FedEx won an appeal overturning a National Labor Relations Board regional ruling regarding FedEx Ground Home Delivery terminals in Massachusetts. A jury in Washington State also agreed that the drivers were contractors in a class-action suit.

Contractors were given at least 180 days to meet the new standards, Dow Jones reports.

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.

GotQuestions?

ELDs and Telematics

sponsored by
sponsor logo

Scott Sutarik from Geotab will answer your questions and challenges

View All

Sleeper Cab Power

Steve Carlson from Xantrex will answer your questions and challenges

View All