IRS DEALS BLOW TO FEDEX ON USE OF CONTRACTORS

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Description: A recent setback to FedEx on the independent contractor front could trigger a broader IRS review of the way companies classify drivers. Many firms define drivers as independent contractors, says David West, director of the Seattle-based Center for a Changing Workforce, and those companies could find themselves on the hot seat in the wake of a preliminary finding by the IRS that owner-operators at FedEx's ground delivery business in 2002 should be reclassified as employees. For years, FedEx and its FedEx Ground unit have been at the forefront of the issue. FedEx has been hit with multiple lawsuits challenging its treatment of FedEx Ground owner-operators.
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