Fed Ex misclassifying drivers?
Delivery giant Federal Express has come under scrutiny for its practice of improperly classifying drivers as independent contractors. Gary Terrio and more than 20 other drivers sued the company in 2005 for misclassifying the workers and denying them employee rights guaranteed by state and federal labor laws, writes Amy Biegelsen for The Huffington Post.
According to the lawsuit, the employees who were hired as independent contractors were denied the freedoms they would need to qualify for the exemption, Biegelsen says. Drivers were not allowed to make their own schedule and were required to report to a FedEx package terminal by 6 a.m. They had to purchase their own trucks, but were not allowed to apply bumper stickers or drive the trucks during off-duty hours. The contracted drivers were paid per delivery rather than for their employee attendance and their paychecks were docked if packages were not delivered within an assigned time frame.
The Fair Labor Standards Act (FLSA) establishes that in order for an employer to consider a driver an independent contractor, the hired worker must have a certain degree of control over their tasks. This can include scheduling decisions, determining quality control measures and pay rate negotiation.
In 2012, the Montana Department of Labor Insurance audited FedEx Ground's operations and determined the company should have been classifying some drivers as employees, the source reports. Instead of complying with the findings, FedEx settled the case for $2.3 million.
According to the lawsuit, the employees who were hired as independent contractors were denied the freedoms they would need to qualify for the exemption, Biegelsen says. Drivers were not allowed to make their own schedule and were required to report to a FedEx package terminal by 6 a.m. They had to purchase their own trucks, but were not allowed to apply bumper stickers or drive the trucks during off-duty hours. The contracted drivers were paid per delivery rather than for their employee attendance and their paychecks were docked if packages were not delivered within an assigned time frame.
The Fair Labor Standards Act (FLSA) establishes that in order for an employer to consider a driver an independent contractor, the hired worker must have a certain degree of control over their tasks. This can include scheduling decisions, determining quality control measures and pay rate negotiation.
In 2012, the Montana Department of Labor Insurance audited FedEx Ground's operations and determined the company should have been classifying some drivers as employees, the source reports. Instead of complying with the findings, FedEx settled the case for $2.3 million.
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