Question: Is now a good time to buy a FedEx Ground Route?

[dvalleyjim]

I can't tell you what state I'm in because someone could pin point me and then get me fired (oh, sorry, what's the term they use, disqualified) and to the second part of your question - probably not. You would need a really dedicated manager that would have decision-making rights with EX. Probably a blood relative or someone you trust better than a brother. After you paid the expenses and this person you would be making very little money. It's a lot of risk not to make money.

 

[CJinx]

My old boss refers to three former contractors teaming up to stay viable in ISP as a "three-headed monster". I've seen it happen once, the in-fighting tends to resolve the issue quickly; one guy ends up owning all three as the others walk away with pretty much nothing.

 

[dvalleyjim]

My old boss refers to three former contractors teaming up to stay viable in ISP as a "three-headed monster". I've seen it happen once, the in-fighting tends to resolve the issue quickly; one guy ends up owning all three as the others walk away with pretty much nothing.

Actually it works well at our terminal. There's plenty of ways to set it up and still keep your pay on the different routes separate. You'd need a good lawyer/tax person to set it up. You have to satisfy Fedex's "compliance" rules. Although I think this is a far from ideal situation, there are risks and you never know when Fedex will put an end to it. Even though you can do it legally according to the state and federal governing taxing authorities doesn't mean it will fly with Fedex. Guys at our terminal have had these arrangements for 4 years now.

 

[xfedx]

There is NEVER a good time to buy a FedEx route! It is just one big SCAM where only FedEx benefits! You assume all financial risk and legal responsibility and FedEx controls 100% of what you do. Sooner or later the drivers for both Ground and Home are going to realize they are being ripped off working 10-14 hours with no overtime and demand what they are legally entitled to! Their "employers/independent contractors" are not exempt from paying time and a half over 8 hours because they do not have motor carrier numbers protecting them under DOL/DOT rulings. They cannot run under FedEx's because they are not "employed" by FedEx! FedEx clearly states they are "Independent Contractors", FedEx cannot have it both ways. That is what needs to be challenged now in the courts. With someone other that the DISHONORABLE JUDGE * who was paid to side with FedEx in the last and ongoing class action!

 

[CJinx]

If ground and home drivers don't like what they're being paid, they need to have a word with their boss. We don't control how much they get paid. Blame the ISP that writes himself a large salary and doesn't drive.

Here's a "that would be funny if it wasn't true" statement: There are drivers in my station working for one ISP that make less per hour than the package handler that loads their trucks. This isn't a fedex issue, this is a cheapskate ISP issue.

 

[bbsam]

As an ISP I will say honestly that not all drivers are worth that much money. Some are awesome and I have no problem paying them more. Some are barely adequate and I can only laugh at their "threats" to go elsewhere. They won't unionize. I know which drivers to "incentivize" to keep the vote 5 to 3.

 

[UpstateNYUPSer(Ret)]

One of the problems I have with unions is the awesome and barely adequate are paid the same.

 

[xfedx]

Lets address the overtime issue that Ground and Home drivers are legally entitled to but are not getting. How is it that Express or one of FedEx's temp agencies drivers are paid legally and yet Ground/Home isn't? Don't kid yourself, they will unionize, as well they should.

 

[bbsam]

Lets address the overtime issue that Ground and Home drivers are legally entitled to but are not getting. How is it that Express or one of FedEx's temp agencies drivers are paid legally and yet Ground/Home isn't? Don't kid yourself, they will unionize, as well they should.

And do you think you are the first that has suggested unionization at Ground and HD?

 

[xfedx]

Again, address the OT issue

 

[bbsam]

Go ahead.

 

[xfedx]

Why do contractors continue to get away without paying overtime when it is legally owed to the drivers of Ground & Home? Express & temps get it. Why not G/H?

 

[bbsam]

Why do contractors continue to get away without paying overtime when it is legally owed to the drivers of Ground & Home? Express & temps get it. Why not G/H?

Because it is not legally owed. I don't think it has been since deregulation in the 80's.

 

[xfedx]

Contractors cannot hide behind FedEx's DOT motor carrier status. That is for an "employee" only. And FedEx has made it clear they are Independent Contractors, not employees. So all DOL regulations defined for employment are out the window. Labor is based at the state level. Overtime at time and a half and double time is due when applicable. Why do you think temps get paid OT? FedEx cannot have it both ways. Either contractors are employees (as they really should be classified) or they are truly independent contractor (in which case they are not classified as a motor carrier and exempt from DOL ruling.

 

[dvalleyjim]

Because it is not legally owed. I don't think it has been since deregulation in the 80's.

If you are not paying your drivers hourly plus overtime you are setting yourself up for major legal and employment problems. They are also entitled to breaks and lunch. You should read the labor laws for your state to know for sure. These breaks and lunch must also be documented. You need a time card and an employee manual. Lawyers are also effected by the slow economy and this is a lawsuit they are now pursuing intently.

In many states piece work is also illegal, check your states employment laws.

That being said, I know that payroll companies will tell you that salary is ok for your drivers. They won't be fighting the legal battle, you will. In my state salary is only for managers that supervise employees. Who does your driver supervise? Same for piece work, it's a red flag. Is it one your willing to try and defend at a labor board meeting?

 

[bbsam]

Dvalley what then would be made of truck drivers getting paid by the mile? The trucking industry is treated very differently than retail and other sectors. Suffice it to say, however, that my drivers all make well over minimum wage whether overtime is factored in or not.

 

[fedex1968]

Probably because the employee has not taken contractor to the labor board. Not sure your hours but our guys come in a 7;30 am and one done at 4 and other 4;45 No break if they are busy and about 1 hour if they aren't. Not real sure where the 10-14 hours come from even if you have a kinko's where last pickup is 6 at ground. Home delivery may be different story.

Express company owned. Think only ground and home delivery would apply for your question

 

[dvalleyjim]

Dvalley what then would be made of truck drivers getting paid by the mile? The trucking industry is treated very differently than retail and other sectors. Suffice it to say, however, that my drivers all make well over minimum wage whether overtime is factored in or not.

In my state, if they sue you, you WILL go in front of the labor board and you WILL lose. You do what you want. Go ahead risk it. As you know from our past discussions I did some risky things in the past so I'm not judging. States want their payroll taxes. Most are broke. They collect more taxes on overtime pay. You do the math. You might win but who needs the hassel.

This will happen when you fire one of those drivers that you say you laugh at when they threaten to go elsewhere. When they do or you fire them then they will hire an attorney to go after overtime and breaks. good luck with that.

 

[bbsam]

In my state, if they sue you, you WILL go in front of the labor board and you WILL lose. You do what you want. Go ahead risk it. As you know from our past discussions I did some risky things in the past so I'm not judging. States want their payroll taxes. Most are broke. They collect more taxes on overtime pay. You do the math. You might win but who needs the hassel.

This will happen when you fire one of those drivers that you say you laugh at when they threaten to go elsewhere. When they do or you fire them then they will hire an attorney to go after overtime and breaks. good luck with that.

Thankyou for your concern. I'm just surprised it hasn't happened yet if it is that easy. We've seen plenty of folks leave unhappily from our terminal and that has never come up and I am 100% certain that some have spoken to attorneys. My question would be, "Why didn't the attorneys jump all over that?"

 

[bbsam]

I just googled it. Seems there is a "motor carrier" exemption to the FLSA. Drivers in this category are not covered by the FLSA. I do think there is some gray area, but it does explain why there aren't dozens of lawsuits brought by attorneys telling their disgruntled clients that it is a "slam dunk".