The crux of the issue between Fedex and its drivers is the classification of their drivers as independent contractors as opposed to employees. There are several important real-world issues that result from this seemingly insignificant classification, and they are detailed below:
- Employees have taxes withheld from their paychecks, while independent contractors do not.
- This lack of withholding generally greatly increases an independent contractor’s tax liability at the end of the year.
- Independent contractors are responsible for their own benefits, such as health insurance and retirement plans.
- Independent contractors are not paid for vacation time.
- Independent contractors are generally not protected by employment law statutes.
These are just five main differences. If you would like to know more about your rights as they relate to the Fedex issue, contact a Fedex overtime attorney at Pulaski & Middleman to schedule a free initial consultation.
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