Peak advice.

[Bounty]

Guys all good points. But every IC/ISP has to decide for himself where he or she wants to be 5 years from now given the ever increasing level of command and control. They made you sign a contract that gives them unrestricted access to your private corporations private financial records and it's not limited to payroll despite privacy laws and the employer/ employee confidentiality rules. Oh they promise it will remain "confidential" but they don't tell you how many tiers of management will have access to your records including how much your paying your guys. And in their steadfast determination to maintain their total domination over you they willfully obstructed your right to due process of law by not allowing you to have your legal representation (attorney) present during the so called "negoiation" of a legal document known as your operating agreement. While most class action lawsuits involve IC's from years back,these two specific actions may be grounds for ISP class actions in the future.

Well said bacha, it just takes one ISP to start the ball rolling and everyone who has dealt with x knows they will push and push until they p i s s off someone enough until they take legal action. It's coming!!

 

[MrFedEx]

Are you saying dvalleyjim was on the up and up?!

An "independent contractor" paying his "independent contractors" via 1099. What's the problem? When I get paid as a realtor, my check is a 1099, and I am a true independent contractor, not the make believe kind.

 

[gixxer squid]

So why is there still lots of Express packages? Still plenty of Express accounts? The only reason Ground is more profitable is because the drivers are so poorly paid.

Giving out any government cheese for Christmas bonuses?

Beg to differ amigo. It's trickle down economics, we get paid SHeet which translates to drivers getting paid sheet. Trust me, the turnover is 99 percent related to pay, I would in a heartbeat pay more to drivers if my pay was more. The 3-5% net I do make would be 0% if I paid them each 150-200 a week more and honestly. They effing deserve it!

 

[gixxer squid]

That's easy. Express is dying. Ground is where the life of the company is.

So why is express dying?

Because they actually make a better wage than ground, have benefits and medical?

Grounds better because they can friend us better

 

[gixxer squid]

An "independent contractor" paying his "independent contractors" via 1099. What's the problem? When I get paid as a realtor, my check is a 1099, and I am a true independent contractor, not the make believe kind.

Fedex lost the lawsuit and appeals in California, not contractors

 

[bacha29]

IC's and ISP' who are still paying their help with 1099's may be exposing themselves to more risk than they realize. Too often the payee doesn't know that he is liable for all taxes but doesn't know that until it comes time file his return, expecting to be refunded thousands he owes thousands and can't pay them. This is what happened in hundreds if not thousands of cases involving RPS/FXG drivers and X was feeling the heat from the IRS because of the millions in taxes left unpaid not to mention states including WC and UC. That is why you have to be an S or a C and treat drivers as employees. As for Express, their paying their bills but thats about it.Ground's revenue contribution is only 21% of the corporations total revenues but 78% of the corporations profit comes from that 21% revenue share. If not for Ground instead of a $150 stock it would be a $60 stock.

 

[Cactus]

Beg to differ amigo. It's trickle down economics, we get paid SHeet which translates to drivers getting paid sheet. Trust me, the turnover is 99 percent related to pay, I would in a heartbeat pay more to drivers if my pay was more. The 3-5% net I do make would be 0% if I paid them each 150-200 a week more and honestly. They effing deserve it!

They do deserve to be paid better and you guys too but according to @bbsam he's rolling in the dough. But to most others the pay is s*h*i*t anyway you slice it. You guys and the drivers getting bad pay is what makes Ground underservably very profitable.

 

[dvalleyjim]

I will never 1099 my drivers so I will never walk in your shoes. I can only imagine what other "costs" you forwarded on to your drivers.

Your insane. My drivers stayed with me for years, Many took over their routes on payments. This is before X took over and then made us incorporate in 2008. I had other contractors' drivers coming to me for a job. This is before the 2008. After that you had to have a s or c corp and let us audit your books. I know you don't like me and I don't care. If you like your ISP business good. after 18 years I decided to leave. I got my money and left. One day you will get a million for your million dollar business, right?
I don't need a million.

 

[dvalleyjim]

A lot of harsh words between you ground guys. Wonder why all the sudden?

I never called him a dick. I haven't been in the ground business since 2012.

 

[dvalleyjim]

LOFL. You're part and parcel of the biggest scam going, and you have the gonads to call someone else a scammer? Oh, and don't independent contractors usually get paid by 1099?

I always got 1099 and they are going to send me a 1099 for my 163,000,000 I got coming. oh yeah!

 

[dvalleyjim]

That's easy. Express is dying. Ground is where the life of the company is.

Express isn't dying. They pay their drivers. By the way, when I ripped of my drivers through a 1099 they were bringing home $750.00/wk, $100.00 dollar monthly bonus and a $500.00 / quarterly bonus. How about your drivers BBsam. and all their taxes were paid.

 

[bacha29]

When dvalley jim sold his routes the new owners were paid with 1099's by RPS/GXG. Now all DVJ was doing was providing financing. The new owners were considered the new independent contractors. Owner financing is quite common. While the IRS rules involving OF are strict if dvj 's owner financing was complient , that's what matters. And again whoever's name is on the settlement decides the matter. Now if DVJ is one of those CA contractors looking for a big settlement. I read the settlement and it is no where near as lucrative as some believe. It would appear that it will not matter if you have 1 route or 25 you are still considered to be 1 claimant. If you took the entire settlement subtracted the proposed attorney fees (22%) and divide the balance by 2000 certified claimants the net amount looks to be somewhere around $ 72,000.

 

[It will be fine]

Express isn't dying. They pay their drivers. By the way, when I ripped of my drivers through a 1099 they were bringing home $750.00/wk, $100.00 dollar monthly bonus and a $500.00 / quarterly bonus. How about your drivers BBsam. and all their taxes were paid.

All their taxes weren't paid if you gave them 1099s. No employer matching contributions. That salary sounds low for California, I know I did better when I was being 1099ed as a second van driver way back when.

 

[MrFedEx]

I always got 1099 and they are going to send me a 1099 for my 163,000,000 I got coming. oh yeah!

Funny how that works, isn't it?

 

[MrFedEx]

Express isn't dying. They pay their drivers. By the way, when I ripped of my drivers through a 1099 they were bringing home $750.00/wk, $100.00 dollar monthly bonus and a $500.00 / quarterly bonus. How about your drivers BBsam. and all their taxes were paid.

I'll bet you paid more than bbsam.

 

[bbsam]

I'll bet you paid more than bbsam.

Not even close.

 

[dvalleyjim]

When dvalley jim sold his routes the new owners were paid with 1099's by RPS/GXG. Now all DVJ was doing was providing financing. The new owners were considered the new independent contractors. Owner financing is quite common. While the IRS rules involving OF are strict if dvj 's owner financing was complient , that's what matters. And again whoever's name is on the settlement decides the matter. Now if DVJ is one of those CA contractors looking for a big settlement. I read the settlement and it is no where near as lucrative as some believe. It would appear that it will not matter if you have 1 route or 25 you are still considered to be 1 claimant. If you took the entire settlement subtracted the proposed attorney fees (22%) and divide the balance by 2000 certified claimants the net amount looks to be somewhere around $ 72,000.

It's more like 106,000 after taxes. Hey I was expecting nothing and may still get nothing. If I get 72,000 after taxes what the hell? Right?

 

[dvalleyjim]

All their taxes weren't paid if you gave them 1099s. No employer matching contributions. That salary sounds low for California, I know I did better when I was being 1099ed as a second van driver way back when.

It may be low. We are talking over 10 years ago. Everyone contractor was 1099 'ing their drivers, RPS knew it and still covered them under "work accident insurance" (what ever the hell that is). It even had a contract on the back of the work accident form for the drivers to sign.

I just know that I paid the most to drivers in my terminal at the time and never wanted more that 3 routes. When I grew to 4 or 5 routes I'd sell them to the most senior drivers (that could get approved) on payments. I'd sell them my oldest truck with it.
Did I rip them off? I think their still contracting with FedEx even now. This is what I'm talking about. In this system a driver had somewhere to go. I'm old now and don't care to go anywhere. HaHa

 

[bacha29]

dvj ' lets try to narrow this down closer. Did you subtract out the 22% off the top that goes for attorney fees. As for the subclasses that provide a settlement for overtime and meals but to be a certified claimant you still have to be contracted on 8/31/2015. I wonder how many people that will involve given that the settlement involves the years 2000-2007. I think we are close but I think $ 106,000 might be a little high but I think we might be in the $85,000 to $90,000 range . I think we would be safe in that range. I laugh outloud when I see some of the numbers some guys think they are going to get.

 

[dvalleyjim]

dvj ' lets try to narrow this down closer. Did you subtract out the 22% off the top that goes for attorney fees. As for the subclasses that provide a settlement for overtime and meals but to be a certified claimant you still have to be contracted on 8/31/2015. I wonder how many people that will involve given that the settlement involves the years 2000-2007. I think we are close but I think $ 106,000 might be a little high but I think we might be in the $85,000 to $90,000 range . I think we would be safe in that range. I laugh outloud when I see some of the numbers some guys think they are going to get.

Attorney fees came out before I got my my estimated settlement. I know what I'm talking about. I have all the paperwork and ain't a bumpkin. The settlement was for 230 million or their about. The attorney took out their cut from that, then their where 4 main plaintiffs who got there cut, the rest gets distributed to the class action status people (me) based on hours driven in general class, overtime subclass, meal and rest period settlement subclass. No attorney fees are coming out of my estimated settlement, I send a w-9, they will 1099 me and I will have to claim the money as income. No attorney fees out of my 163,000 settlement, got it, they already got theirs. On 3-24 it will be finalized and I will receive a check 5-8 weeks later.