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Independent Contractors – FedEx in Trouble

May 10

Many companies nowadays are trying to claim employees are in fact, not employees, but rather that they are independent contractors. This can be very frustrating and expensive if you find yourself being identified as a non-employee. Why do companies do this? Simple, it’s all about saving money.

FedEx has gotten themselves into a bit of trouble by declaring that many of their workers were only contractors. They even made their drivers purchase their own trucks! Of course, the “contractors” had to wear a uniform, take instruction and even adhere to FedEx grooming standards, but they were not considered employees. Well, the IRS felt otherwise and has hit them with over $200 million in fines for the year 2002. It is not looking good for FedEx.

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