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Independent contractor or employee?

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  • Independent contractor or employee?

    What's your take on this? Are FedEx Ground drivers, business owners or employees?

    With all the regulations FedEx requires of the staff, they really do seem like employees to me.

    FedEx Ground loses ruling in long-running dispute with drivers - As it prepares to tackle dozens of court cases at once, FedEx Ground has lost another key legal battle over the classification of its drivers.

    Last week, the California Court of Appeals affirmed a lower court's finding in Estrada vs. FedEx Ground that FedEx Ground independent contractors are employees. It cited a number of regulations FedEx Ground has for its drivers, ranging from controlling the color of contractor's socks to the way they wear their hair, as evidence of their being employees.

    The independent contractor model, which is designed to allow drivers to set up a small business around FedEx Ground and Home Delivery deliveries, has been an integral part of FedEx Ground's ability to compete with UPS since the company was founded as RPS in 1985. Through this model, FedEx Ground does not have to offer the same benefits and reimbursements as it offers its employees.


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