fedex ground

Discussion in 'Report A BAD Trucking Company Here' started by kidz bop, Oct 6, 2017.

  1. kidz bop

    kidz bop Light Load Member

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    can someone explain to me why the fedex ground in my area, bloomington california by fontana, still labels it's drivers as contractors, despite the company being sued for over 200 million and lost for the fact they was illegally labeling their drivers as contractors. they don't even pay their drivers benefits who work 60 plus hours a week and sleep in the trucks as team drivers.

    i could be wrong on something here. but this whole thing i'm trying to wrap my head around.
     
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  2. Bumper

    Bumper Road Train Member

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    Im in the same area and agree with what you said. I guess it is because 200 million is pocket change to them. They can do what they please and not care about the consequences.
     
  3. ZVar

    ZVar Road Train Member

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    About 5 minutes of google would have found that...
    Since you are talking teams, I'm assuming you are talking Ground Linehaul. They were never part of the settlements. It only applies the Ground Package Delivery folks. Linehaul is a completely different beast.
     
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  4. USMC 3531

    USMC 3531 Bobtail Member

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    Because they still are contractors, the lawsuits didn't change the overall FDX ground contractor business model, it just forced FDX to give the model a much needed overhaul, the main one being that contractors have to be incorporated and they can only be C or S corps, sole proprietorships and llcs are not accepted, this put a end to contractors operating as sole proprietors and classifying their employees as sub contractors and paying them on 1099s instead of w2s ,also it doesn't matter if you are a linehaul contractor or p&d contractor, both sides are subject to the current corporation requirements, also depending on the terminal location contractors may have the option to run under the standard contractor model or the newer ISP (independent service provider) model.
     
  5. USMC 3531

    USMC 3531 Bobtail Member

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    The main issue at that time was that the operating agreement between FDX ground and the contractors didn't hold up in court, I contracted to ground for 12 years and while not a cheerleader for them I will say it wasn't all their fault, the contractors shared some of the blame also, like the numerous people who come on this forum and complain about lease purchase contracts, I would say the majority of the issues that caused the lawsuit were contractors who simply didn't read the whole operating agreement and just signed it or they just decided after a couple years of doing it that they felt it wasn't fair to them, things like having to purchase uniforms and having to pay to have the logos put on the truck and having to pay rent on the scanner and basically being dispatched like you were a employee were just some of the complaints, but these were clearly outlined in the operating agreement at that time, not saying that FDX or their management was completely innocent in it either, the corporation guidlines should have been implemented going all the way back to the RPS days but like most companies they wait until they get sued really good and then make a changes.
     
  6. JimmyWells

    JimmyWells Road Train Member

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  7. jvar4001

    jvar4001 Medium Load Member

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    I never understood the diference between s- corp, C-corp and LLC. Even the accountant explanation was horrible.
     
  8. bigblue19

    bigblue19 Road Train Member

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    I never understood the diference between s- corp, C-corp and LLC. Even the accountant explanation was horrible.

    A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.

    An S corp is considered a "pass-through entity," which means the business itself isn't taxed. Instead, income is reported on the owners' personal tax returns.

    When a small business incorporates, it is automatically a C corporation, also called a regular corporation. The most basic characteristic of the corporation is that it is legally viewed as an individual entity, separate from its owners, who are now shareholders.

    S-corp- personal or individual taxation
    C-corp- corporate taxation & dividends taxation Owner is a shareholder
    LLC- Taxation like a sole proprietorship with the limited liability of a C-corp
     
  9. jvar4001

    jvar4001 Medium Load Member

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    wich one did you personally choose . It sounds like is still missing something . i mean Do we ever pay social security ? wich one guarantees you to pay more on SS. wich one pays less on taxes. Whats the results on each one of them if we r making 60 k a yr assuming we have the same route with the same expenses.
     
  10. Frank Speak

    Frank Speak Heavy Load Member

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    Have you tried biting any necks? Always works for me!
     
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