Major Fail At Our Ground Terminal Already

bbsam

Moderator
Staff member
So, they will tell you how to do it because you think they are out to protect you. Hahaha
No but they will set standards. You don't think k they want to lose THAT lawsuit with talk of "co-employee" now in the lexicon, do you?
 

bacha29

Well-Known Member
The primary focus of the annual compliance statement is that drivers are being treated as employees taxes are being witheld and submitted and are issued w-2's not 1099's. X steered away from the issue of salary vs wage. That issue is a can of worms they won't get involved in leaving it up to the contractor to litigate that matter should it arise.
 

bbsam

Moderator
Staff member
The primary focus of the annual compliance statement is that drivers are being treated as employees taxes are being witheld and submitted and are issued w-2's not 1099's. X steered away from the issue of salary vs wage. That issue is a can of worms they won't get involved in leaving it up to the contractor to litigate that matter should it arise.
If X believes that paying drivers salary is contrary to the law, they would insist on hourly pay and proof of it.

They aren't about to knowingly leave that open considering the considerable exposure they've had to legal challenges by employees of contractors. That would be a 50 foot barn door wide open to FedEx cash.
 

bacha29

Well-Known Member
Since the "joint employer" ruling that came down from the NLRB, the issue of how drivers are to be paid, salary or wage will get a closer look . In fact certification was recently granted to a class action suit based on ERISA and this one is nationwide.
 

bbsam

Moderator
Staff member
Can somebody explain why given the above guidelines Ground contractors would be prohibited from paying salary?
 

bbsam

Moderator
Staff member
Drivers are not exempt employees but you may have a exemption to not pay overtime, as long as the vehicle they drive is over 10,000 lbs.
But there is also the bit about as long as the salary covers or exceeds minimum wage from the first link isn't there?
 

MAKAVELI

Well-Known Member
But there is also the bit about as long as the salary covers or exceeds minimum wage from the first link isn't there?
Like I said, under that definition, your drivers are not exempt employees. You must pay them for every min on duty.
 

bbsam

Moderator
Staff member
Bbaam you are wasting your time trying to explain the law with guys that seem to be certified lawyers lol
Honestly, I'm not sure exactly how it works. I know that if SPH is correct, X and just about every contractor is in serious trouble.
 

Crozz

Well-Known Member
It works like this if minimum wage is $8.50 40 hours would be $340, now if I work them 50 hours I would have to pay $12.50 an hour for 10 hour over time totaling $467.50 for 50 hours. As long as pay minimum wage and track your hours and can show your paying at minimum or above minimum your are safe. Key is you have to keep up with the hours. That's why my drivers don't come in until 8 for HD and 8:30 for my ground guys and everyone has to clock out at the end of the day and I record it.
 
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