“We believe U.S. [gross domestic product] will grow less than 3%” for the rest of FedEx’s fiscal year, which ends May 30, said FedEx Chief Financial Officer Alan B. Graf Jr. He said the company lowered its profit guidance “almost entirely based on freight market” and economic forecasts.

The reduced outlook overshadowed FedEx’s results for the first quarter ended Aug. 31, which rose 4% from a year earlier. At 4 p.m. in New York Stock Exchange composite trading, shares of FedEx fell $2.88 to $104.63.

Wall Street had hoped for a lift for sluggish freight-industry volumes from the annual holiday shipping surge. The peak shipping season traditionally begins in late summer and builds into the fall as retailers and other businesses load boats, planes, trains and trucks with products ahead of the holiday shopping crush.”

While no mention of the Fedex Ground legal problem is made here, it’s obvious that hundreds of millions of dollars being spent on one issue will harm the company’s overall results.  If you have been wrongfully classified by Fedex Ground, contact the Fedex overtime attorneys at Pulaski & Middleman to schedule an initial consultation. 

“The FedEx Corporation could pay between $26 million to $33 million in severance costs alone for abandoning its illegal contractor model in California, a change announced Thursday by company chief executive Fred Smith.

Smith said FedEx is offering special incentives to encourage single-route contractors to transform their operations into multiple route businesses or sell their routes to others. Information obtained by the Teamsters from FedEx drivers puts the incentives at $25,000 to $33,000 per contractor to leave their jobs at FedEx.

There are 1,055 such contractors as of March 2007, according to court filings. FedEx Ground commonly puts its total contractor workforce nationwide at 14,000 to 15,000.”

This obviously affects the claims that could be made going forward, but not yours if you were wrongfully classified.  Basically, this announcement could be seen as a tacit admission by Fedex Ground, but to find out how it applies to you, contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule a free initial consultation.

“FedEx Ground said it disagrees with the ruling and is “evaluating its legal options.” Only 33 of the drivers in the suit still are working for the company.”

It’s not clear at this time what Fedex Ground’s options could possibly be.  The company has been taking a beating in nearly every arena in which this controversy has been adjudicated, and if you would like to gain an understanding of how your rights may be affected by this situation, you need to contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule an initial consultation.

The difference between an employee and an independent contractor as defined by the federal tax code;

1.      The tax and benefits ramifications of being classified as either;

2.      Relevant laws, rules and regulations that apply to this situation;

3.      News and updates regarding this burgeoning Fedex issue.

We invite you to check back often, as this relatively new issue is beginning to gain momentum in terms of media coverage, and every news story and ruling could potentially have a profound effect on any claim that you, as a current or former Fedex driver, may have.  In the meantime, if you seek the help of a Fedex overtime lawsuit attorney, contact the law firm of Pulaski & Middleman, LLC for a free initial consultation.

1. Employees have taxes withheld from their paychecks, while independent contractors do not.
2. This lack of withholding generally greatly increases an independent contractor’s tax liability at the end of the year.
3. Independent contractors are responsible for their own benefits, such as health insurance and retirement plans. 
4. Independent contractors are not paid for vacation time.
5. 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. 

1. Is the worker told when to come to work and when to leave?

2. Is the worker given specific instructions on how to perform his or her duties?
3. Is the worker given specific instructions in regards to where to go during the workday?
4. Does the worker have to report to a specific location every day he or she works?
5. Is the worker subject to internal human resources policies and procedures?

Of course, there are other questions, but if the answer to the queries above are “yes,” then that person is generally considered an employee and not an independent contractor.  This is the central issue in the burgeoning controversy involving Fedex and its drivers, who have been classified as independent contractors, even though the answers to the questions above, when applied to these drivers, is generally “yes.” 

If you would like to gain an understanding of how your rights may be affected by this issue, contact a Fedex overtime attorney at Pulaski & Middleman for a free initial consultation.

The article points out that one driver, Jerry Ferguson of

However, it turned out to be anything but the independence that

Work where and when he was told to by Fedex;

1. Had to wear an official company uniform;

2. Restrict the driving of his own trucks that were bearing the required Fedex logo.

As a result, the EDD assessed an amount of $7.8 million in back taxes owed, including payments for unemployment insurance, disability insurance and employment taxes.  Fedex has appealed this decision, and no outcome has yet been reached.  The assessment did not become public record until Fedex filed this appeal.

This is just another piece of a growing body of evidence that Fedex faces potentially significant liability for this classification of its drivers.  If you feel that you were wronged by Fedex as a result of being classified as an independent contractor, contact the Fedex overtime attorneys at Pulaski & Middleman to schedule a free initial consultation.

The ability to hold this vote was a result of the National Labor Relations Board’s finding that Fedex drivers were employees and not independent contractors.  This ruling was necessary, because only employees of a company can unionize.  The decision was made by the NLRB’s

In relevant part, the statement from the NLRB details that:

“…although 23 drivers at the terminal signed contracts stating that they would operate as independent contractors, they should be considered employees under labor law because they must adhere to the company’s rules and regulations and do not exercise full control over work, compensation, training, or routes.”

Therefore, if you feel that your rights have been harmed as a result of this issue, contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule a free initial consultation. 

Have you dreamed of running your own business? Do you prefer getting out and interacting with customers, rather than sitting at a desk all day? If the answer is “yes” becoming a P&D, Linehaul or Home Delivery Independent Contractor with FedEx Ground or FedEx Home Delivery may be ideal for you. Consider the advantages: excellent earning potential, the ability to grow your own business, and the chance to partner with the fastest growing transportation company in

As we’ve seen in earlier entries, actual drivers did not, in their opinion, generally get to experience the benefits that are described here.  If you are among them, please contact the Fedex overtime attorneys at Pulaski & Middleman today to schedule a free initial consultation.