FedEx Misclassified Drivers As Independent Contractors, Rules Ninth Circuit — forbes.com

FedEx is everywhere. But a key component of how it does business has been upended by the Ninth Circuit Court of Appeals, which ruled that 2,300 FedEx Ground drivers were misclassified. For years, FedEx called them—and paid them—as independent contractors. No way, said the court resoundingly, they are employees. Employees trigger a litany of federal and state tax withholding, fringe benefit, anti-discrimination, health care, pension, worker’s compensation and unemployment insurance obligations. You avoid these entanglements by hiring independent contractors or do you? If they are really independent contractors, sure, but labels aren’t enough.

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