Fedex Lawsuit Attorney

The Fedex Driver Controversy - An Issue with Real Consequences

The news has been filled recently with stories regarding the growing controversy that exists between Fedex, its drivers, labor unions and the federal government. Although the basic issue that underlies the entire situation seems somewhat innocuous, that is anything but the truth. Below we'll take a look at the issue and how things are playing out in courtrooms across the country.

The Classification Issue

The classification that's referred to here is how Fedex classifies its drivers. The company treats its delivery drivers as independent contractors, which means that the drivers are paid their "salaries" in full and without any deductions or withholdings for taxes or social security contributions. This may seem like an advantage to the drivers, but that "advantage" only lasts until April, when it's time to file tax returns.

The reason is that all of these drivers need to make up the difference between what they should have been contributing to the treasury throughout the year and what they didn't. This almost always leads to a significant tax liability being thrust upon the individual driver. This classification also represents a significant financial advantage for Fedex, as they get to avoid payroll taxes, the payment of benefits and other employee-related expenses that are the norm with any employer.

How the Issue is Being Resolved

Overall, courts and administrative law judges are not siding with Fedex when this issue is brought before them for a decision. When judges are required to decide whether or not someone is an employee or an independent contractor, there are several aspects of the working relationship that are analyzed closely.

Basically, these factors all boil down to one question - how much control does the company/potential employer have over the way in which their employees/service providers manage their daily routines. If a company requires its people to report to a certain location at a certain time and to provide their services in a specific manner, then most decision-makers will lean towards that relationship being one of an employer and an employee.

Overall

In summation, as more of these decisions come down against Fedex, the company will continue to face significant legal and financial consequences. Fedex has already been ordered at least once to pay back taxes for payroll after their drivers were classified as employees, and more decisions are on the way. If you have been harmed financially as a result of this classification, contact the Fedex overtime attorneys at The Firm to schedule a free initial consultation.