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FedEx Fined Millions by IRS For Misclassifying Workers

You may remember that back in October we called out FedEx Ground for scamming the workers who make it a success by misclassifying them as "independent contractors".

Any five year-old can tell you that there is only one individual out there who could really make “The World on Time,” delivering millions of packages overnight all by himself – Santa Claus.

But FedEx would have you believe they’re pulling off this same miracle 365 days a year with NO Employees.

FedEx drivers are misclassified as independent contractors when they should be employees and afforded all the rights of employees. The courts say so. The NLRB says so. Still, FedEx insists on misclassifying their drivers as independent contractors and denying them their basic rights.

Well, late on Friday, the IRS announced that they agree -- and levied $319 million in back taxes and fees on FedEx for its use of the "misclassification" dodge:

FedEx Corp. said late Friday that the Internal Revenue Service has ordered the company to pay back taxes and fines totaling $319 million for ground employees the firm misclassified as independent contractors.

The ruling covers 13,000 employees FedEx had in 2002, and the company said that the IRS is investigating the status of contractors hired between 2004 and 2006. That probe could lead to further penalties, the company said.

Learn more about misclassification on the Change to Win Web site.

Comments (1)

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FEDEX FREIGHT IS THE ONE THE nrlb NEEDS TO LOOK AT THEY TELL YOU TO BE AT WORK @7PM YOUR BILLS DONT GET READY TILL 745PM AND THEN THEY SAY THEY AINT PAYING YOU FOR THAT 45 MINUTES .IF THAT IS SO WHY DO WE HAVE TO SHOW UP @7PM AND NOT GET PAID FOR IT. FEDEX IS A LOW LIFE COMPANY I AM SURE IF THEY INVESTIGATE THE GROUND,FREIGHT,EXPRESS,NATIONAL THEY WILL FIND OUT THAT FEDEX IS DOING ALL THERE EMPLOYEES WRONG.

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