FedEx faces new challenge to driver contracts - WMC Action News 5 - Memphis, Tennessee

FedEx faces new challenge to driver contracts

MEMPHIS, Tenn. (AP) - Memphis-based FedEx Corp. disclosed Friday that it has received an IRS challenge to its business model for contracting with independent drivers for the company's FedEx Ground division.

FedEx said in a Security and Exchange Commission filing that the IRS has tentatively concluded through a 2002 audit that contract drivers with FedEx Ground should have been classified as company employees.

The IRS decision is the latest in a series of attacks on FedEx Ground's system for contracting with independent pickup and delivery drivers who own and maintain their own trucks while lacking access to work benefits provided for company employees.

 

(Copyright 2007 by The Associated Press.  All Rights Reserved.)

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