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5 responses to “Court: FedEx Drivers Are Independent Contractors, Not Employees”
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
Federal Court: FedEx drivers are independent contractors in 20 states
Tax Analysts reports ($link) on a class action suit decided in Indiana that rules on the status of FedEx drivers…
The IRS has a different set of rules to reclass workers from independent contractors to employees for employment tax purposes than did that judge for labor purposes in this consolidated state-by-state case. But, unlike weaker small businesses that the IRS can more easily force, I suppose that FedEx’s lawyers may have that issue technically covered, too.
The IRS has an apparent strong bias against the independent contractor worker classification. According to the GAO, during fiscal year 2008, 72% of all Form SS-8 requests filed resulted in IRS determinations that the workers in question were employees, 25% were closed without any advice given, and 3% resulted in determinations that the workers in question were independent contractors (see link below).
http://www.gao.gov/new.items/d09717.pdf
In researching the audit defense side of worker classification, I found that many sources suggest not relying on the IRS’s own 20-factor common law test or 3-factor behavioral-financial-relationship control test. The thought is that the IRS just deemphasizes certain parts of the tests and emphasizes others to their own advantage. Instead, they suggest in cases where the IRS is trying to reclassify independent contractors as employees, one is better off proving the tax has already been paid by the worker. If that fails, then try asserting parts of the 20-factor common law test or 3-factor behavioral-financial-relationship control test. If that fails also, immediately seek Section 530 relief.