Fedex Workers Aren't Employees, Judge Rules. What Happens To Freelancers?
FedEx drivers have lost a series of lawsuits claiming that the drivers should be classified as employees, not contractors. Had the suits been successful, the drivers would be owed overtime, back pay, vacation, sick leave, and other damages, reports Bloomberg.
FedEx has claimed that, because it does not regulate how drivers perform their jobs, its drivers are independent contractors and thus not subject to the Fair Labor Standards Act. Treating drivers as contractors saves the company an estimated 30 percent over UPS’s costs.
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