Did FedEx dictate whether the "contractors" could charge those other people additional delivery charges in the conduct of their "business". An independent contractor would be setting their own rates to charge FedEx, and also whatever they could charge their "other" customers for pickup, storage, transportation, and delivery.
That's what "businesses" do.
If the FedEx contract restricted the "contractor's" ability to charge "other customers" whatever their particular markets would bear, then they were not very "independent".
I draw an analogy to real estate. I think some companies dictate commission to charge the client on a listing. The buyers agent usually gets 1/2 of the listing agent's commission. But even that's negotiable.
In our company, we set a minimum that the associates must charge. However, that can be waived on a case by case basis. We give the agents a lot of discretion, as we would want ourselves.
Correct.
These drivers are NOT truly independent. They are “independent” in FedEx’s eyes because they must bid for the route. Then provide the trucks, drivers, etc. But they ONLY work for FedEx at FedEx advertised rates.
I think FedEx is wrong and the IRS is correct on this issue....frankly I am surprised that it took the IRS this long to get a ruling.
Now a precident has been set for 2003-Current.
Frankly I like FedEx...its a great company but I think they have been, at the very least, “Immoral” in the way they treat their employees and attempt to avoid lawful taxes.
All employees that are classified as contractors have to pay for all benefits out of their own pockets....kinda cheesy in my opinion.
I wouldn’t treat MY EMPLOYEES that way.