Q:  Last week I heard that a panel of judges ruled that FedEx truck drivers are to be considered employees of the company, and not the “independent contractors” that FedEx claims they are. I was surprised this was even a question. How did the company possibly make that claim to begin with if they drive trucks and semis with FedEx on it and wear company uniforms? I always assumed they were employees.

A:  The rationale FedEx uses to classify truck drivers as independent contractors is a stretch but it goes something like this:

They have contractual relationships with thousands of “independent businesses”, which consist of workers who function as self-employed drivers with their own routes, covering the costs of their own trucks, gasoline, uniforms. This isn’t new. FedEx and its drivers have been at the center of the independent contractor misclassification issue for many years. They’ve been sued in several states, losing some and winning some. But just the fact that they’re willing to spend a fortune defending the practice, tells you how much money companies can save by having drivers NOT be classified as employees.

FedEx is not alone. Many companies in the growing e-commerce market –   including the juggernaut that is Amazon– are using the independent contractor business model. Corporations say being a contractor gives drivers flexibility and strong incentives as “small businesses”. But critics say it’s a way to shift the costs of employment to workers and avoid payroll taxes, unemployment and workers’ comp costs. I tend to agree with the critics.

Don’t get me wrong, I’m not against using independent contractors and in many temporary situations, (unexpected surge in workload, special projects) they’re perfect. What’s not perfect is when companies (i.e. Microsoft, FedEx) seem to use the classification to avoid responsibility as employers.

In my opinion, it’s not desirable to have an economy that’s relying more and more on independent contractors who have little income stability. Yes, many of these contractors are successful, but many others are just getting by and have little bargaining power. So your original impression was correct, you thought those drivers were employees, because they should be.

© Copyright Eva Del Rio