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FedEx appeal of misclassification decision won’t be heard

by on
in Compensation and Benefits,Human Resources

The U.S. Court of Appeals for the 7th Circuit in Indiana refused to hear an appeal from FedEx Ground on the nationwide class action certification of its delivery drivers in a lawsuit that could cost the company billions.

The case covers tens of thousands of drivers who claim they were misclassified as independent contractors.

The IRS has already ordered FedEx to pay back taxes and penalties of $319 million over driver misclassification.

Note: For tips on differentiating employees from independent contractors, go to www.irs.gov/pub/irs-pdf/p1779.pdf.

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