Delivery Drivers Misclassified As Independent Contractors

Two recent rulings
regarding FedEx Ground drivers demonstrate the risks of misclassifying workers
as independent contractors rather than employees. In one development, the IRS
ruled that two FedEx Ground drivers in Wisconsin
and Missouri
were employees and not independent contractors. As a result, the drivers were
improperly required to pay their own Social Security and other employment taxes
that FedEx, as the employer, was liable for. And in California, the unemployment Insurance
Appeals Board ruled that FedEx Ground driver Jerry Ferguson was entitled to unemployment
compensation even though the company had classified him as a contractor. The
board noted that FedEx had sufficient control over Ferguson’s work and schedule that he actually
was an employee. Note that a bill—A.B. 2186—that would have imposed penalties
of up to $50,000 against employers that intentionally misclassify workers as
independent contractors recently failed to win the California Legislature’s
approval.

The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.