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FedEx in hot water because of IC status crap! - ChickenLover

Posted: Oct 21, 2009

I was laughing my butt off reading the news this morning because FedEx is in exactly the same kind of trouble that a lot of these MT companies should be in. They have been classifying their drivers as IC status to "save money." Sound like a familiar tactic? Here's the article I cut and pasted:

Tuesday, Oct 20, 2009 @04:01pm CDT

(New York, NY) -- Attorneys general from three states will file suit against FedEx for alleged labor laws violations.

Officials from New York, New Jersey and Montana claim the package carrier illegally classified drivers as independent contractors rather than employees to save money.

They argue FedEx caused a "serious injustice" to over one-thousand drivers in the three states.

Litigation against FedEx Ground Package System is set to begin after October 27th.

New York Attorney General Andrew Cuomo charges the misclassification leads drivers to be deprived of workers' compensation coverage and protection under state anti-discrimination and labor laws.

FedEx has faced previous legal battles over its worker classification practices.

The company says FedEx Ground drivers can operate their own businesses the way they want.

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FedEX - MT20

[ In Reply To ..]
They do take business away from the UNITED STATES POSTAL SERVICE but that could not be a the root of this, could it?

In some cases, postal workers who deliver the mail are classified as independent contractors and they bid on routes. So it's ok for the government to do it but not FedEx?

fed ex versus post office - postal wife

[ In Reply To ..]
To MT20 - I am married to a postal worker. Not all workers are IC, most are employees. You cannot "bid" on a route unless you are an employee and have enough experience - depends on seniority. They use IC workers to fill in when others are out or to help out. JFYI

FedEX - MT20

[ In Reply To ..]
Yes, and it also depends on what state you live in.

I know if you look at the IRS website, definitions of IC is vague. My point above was more along the line of the nature of the article above. This has been going on for a while initited by the Teamsters.

Rural areas are done by bidding, at least where my parents live - RubySoho

[ In Reply To ..]
Literally anyone can bid on the postal carrier routes up in the foothills and you'd be...well, I'll be polite and just say surprised at some of the individuals that manage to land those contracts.

You'd also be amazed at the magazine subscriptions that never get delivered, packages that arrive damaged, letters partially opened.

It's the most bizarre mail situation I've ever seen up there, but that's the way it's run. Cheapest bidder wins.

I think if MTs brought this to the attention of the - Feds, MTSOs would get sued, too.

[ In Reply To ..]
And that's just the IC issue. There are lots of us working a he11uva lotta overtime who aren't getting paid for it, just to make our overstuffed line-count minimums. They all belong in jail.

One MTSO's Opinion - MTSO

[ In Reply To ..]
I only hire independent contractors because I make so little profit that if I had to pay workerâ��s compensation, payroll taxes, etc., I would be losing money and I would have to quit this business. When I decided to pursue my own accounts, I had a line rate in mind that I thought would cover my expenses, pay a decent rate to the transcriptionists and put a small profit in my pocket. I was very wrong on this. I need to charge about 4 cents more per line in order to pay a better line rate and to make this all worth the time and effort I put in every day and if I had to pay them as an employee rather than an IC, I would have to charge about 8 cents more per line. No clinic is going to pay me that amount of money. I try to make things easy for the people that work for me by giving them the same one or two doctors every day. They have no set hours that they have to work but they do have a turnaround time that they have to meet. Some of them work a regular day schedule because they choose to work that time period while others bounce in and out all day/evening long. No one is forced to work any time period. If something comes up, I have often extended the turnaround time for them too. No one has to do a set amount of lines that works for me and they are not guaranteed any amount of lines from me, but I ask people how much they would like to earn and I try to give them that amount of work. Although there is flexibility in how my girls work as independent contractors, if someone decided to sue me for treating them like an employee rather than an IC, I would wonder if I had the right to sue the clinics that are issuing me a 1099 because they have hired me as an IC. Not every MTSO is a fat cat sitting back raking in the money, which is what a lot of you seem to think. I work seven days a week and have not had a day off since I started this business. I have dealt with my share of lying transcriptionists but have weeded out the bad ones and feel that the team I have right now is exceptional. Some days I wonder if this is all worth it but I have built something that I am proud of and I am not ready to throw in the towel. I am hoping that the next time my contracts come due I am able to increase my line rate and can pass some of that off to the transcriptionists that work for me but if I had to revert to employee versus IC, I would definitely quit this business. Lastly, I worked for a company for two years as an IC that had nothing to do with transcription. One of their stipulations in hiring you was that you had to be available during business hours. There are many companies in the U.S. who only hire independent contractors. The way I feel is that if I choose to work under those circumstances, it is my choice. I do not take on a job and then become angry and wonder how I can get back at someone. If you are not happy as an IC, then go get yourself a job as an employee. There are hundreds of transcription companies out there.

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