21 August 2008

FedEx Faces Massive Judgements on Misclassified Employees

FedEx has been classifying its drivers as independent contractors for years, despite the fact that it, "tells its ground-service drivers when to work, what to charge customers and what kind of socks and shoes to wear," and it looks like a federal judge is about to rule against them opening them up to billions of dollars in compensatory and punitive damages, and possibly even more in back taxes.

What's more, it's likely to see successful unionization efforts once reclassification is completed.

This is an increasing problem nationwide, and one would hope that there will be a crackdown soon.


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