Six Point Test

[bacha29]

Looking at the U.S. Department of Labor final rule including the six point test used to determine worker classification it would appear that Fat Freddy and Raj is going to have to come up with the mother of all bull feces stories in order to keep their little "contractor" game going.

There are several web sites and U Tube videos that have been posted by law firms and HR consulting firms that explains those new rules in everyday terms and applications including the fact that Fat Freddy needs only to fail one of the six tests rather than all of them in order to see his little house of straw getting blown away by a cyclone of law suits.

It would appear that in the coming days Fat Freddy in order to keep his little scam up and running it will require quite a bit in the way of lessening the strict rules and constraints especially in the way of equipment, appearance standards ,transfer of ownership restrictions and operating exclusively under Fat Freddy's DOT authority.

Will it result in another barrage of class action law suits? Perhaps. I would be thinking more along the lines of leaving it up to the DOJ to serve Fat Freddy a generous helping of humble pie.

Will he be able to successfully defend his so called "independent contractor" model? Perhaps. At the same time however based on the new test it would appear that it won't be as easy as it was in the past. If you recall that under the terms of the out of court settlement of the multi state class action Fat Freddy got away without having to admit any fault of wrong doing.

Might not be as simple, cheap and easy this time around.

 

[Fred's Myth]

So Ground contractors can "take the test":

New Employee vs Independent Contractor 6-Point Test - SADLER & Company, Inc.

The guide is a result of the the shift in demand for workers in today’s economy.

www.sadlerco.com

 

[It will be fine]

So Ground contractors can "take the test":

New Employee vs Independent Contractor 6-Point Test - SADLER & Company, Inc.

The guide is a result of the the shift in demand for workers in today’s economy.

www.sadlerco.com

It seems easy enough to make arguments that pass that test.

 

[bacha29]

So Ground contractors can "take the test":

New Employee vs Independent Contractor 6-Point Test - SADLER & Company, Inc.

The guide is a result of the the shift in demand for workers in today’s economy.

www.sadlerco.com

I would say that contractors in large numbers will not be the ones to launch a challenge. It was noted in one of the presentations that the contractor being an LLC will not give the employer immunity from a DOJ or DOL challenge who I think would be the ones to spearhead the move.
These new final rules appear to be directed right at Fat Freddy and Jeff Bezos or at the very least are designed to curtail this activity which if you think about is just another form of willful tax fraud in the sense that Smith and Bezos real objective was not to create enterprise value for third parties. Why would they do that? The real objective was to divest themselves of employer taxes and liabilities in order to gain a competitive edge in their respective markets.

The question going for ward is whether or not they retain that edge by somehow proving that it's legal which might not be as easy as it was in the past.

 

[bacha29]

It seems easy enough to make arguments that pass that test.

The fact that a contractor challenge would immediately result in the cancellation of their contract by their one and only customer would speak loudly regarding the contractor's total subjugation to FDX.

In addition contractors as a whole should be mindful of the fact that if a DOJ/DOL lawsuit goes their way every cent of money the contractor has tied up in the matter could be rendered totally gone.

Keep in mind in the late 80's DOJ threatened to sue Sullivan if he didn't at the very least grant contract goodwill and proprietary rights to contractors.

Armed now with some much stronger points of law contractors should not assume that they won't do it again.

Will it come down to a high profile all or nothing courtroom fight? Perhaps not. But the end result is a negotiated deal but one that renders Fat Freddy so powerless to control his contractor workforce that his ability to serve his market in the way the market wants served is so bad that the entire business model gets scrapped.

 

[MAKAVELI]

The fact that a contractor challenge would immediately result in the cancellation of their contract by their one and only customer would speak loudly regarding the contractor's total subjugation to FDX.

In addition contractors as a whole should be mindful of the fact that if a DOJ/DOL lawsuit goes their way every cent of money the contractor has tied up in the matter could be rendered totally gone.

Keep in mind in the late 80's DOJ threatened to sue Sullivan if he didn't at the very least grant contract goodwill and proprietary rights to contractors.

Armed now with some much stronger points of law contractors should not assume that they won't do it again.

Will it come down to a high profile all or nothing courtroom fight? Perhaps not. But the end result is a negotiated deal but one that renders Fat Freddy so powerless to control his contractor workforce that his ability to serve his market in the way the market wants served is so bad that the entire business model gets scrapped.

Pretty much what happened in Canada. If this doesn't kill off the contractor model, the racketeering lawsuit will finish it off if it gets class action status.

 

[bacha29]

Pretty much what happened in Canada. If this doesn't kill off the contractor model, the racketeering lawsuit will finish it off if it gets class action status.

One thing at this point that seems a near certainty is that FDX Ground contracting is no longer a safe and attractive investment vehicle. As long as speculator investment dollars kept coming into the game the operation was able to keep going. Should that end and Fats has to continue to off load big wads of contingency cash to remaining contractors cutting investor returns the whole deck of cards might fall in on itself.

Now at the terminal I hauled out of FDX is in there trying to rearrange belts to prepare for Express to move in with Ground this summer. The ground grunts are being kicked outside to load up in the rain and snow and they are big time angry while Express jocks stay nice and dry. So you're going to have Express guys and Ground contractors with their lower paid box ox together in the same building doing the same thing.

Might make it a bit tougher to prove that Ground workers are true independent contractors.

 

[Fred's Myth]

It seems easy enough to make arguments that pass that test.

I would think you would try to make the case of co-employer in order to help shift potential liabilities to the deep pockets.

 

[yadig]

It seems easy enough to make arguments that pass that test.

Fatz will come up with the $. He may need a lil help though.

 

[It will be fine]

Fatz will come up with the $. He may need a lil help though.

He won’t need to. That racketeering case might make a court look at it if it gets that far, but that seems doubtful to me.

 

[Mutineer]

The ground grunts are being kicked outside to load up in the rain and snow and they are big time angry while Express jocks stay nice and dry.

If this particular event you describe comes to fruition in the manner you describe, would you be so kind to please record, narrate, and post it here?

I think it would have very high entertainment value.

 

[yadig]

He won’t need to. That racketeering case might make a court look at it if it gets that far, but that seems doubtful to me.

Maybe, maybe not.

 

[bacha29]

If this particular event you describe comes to fruition in the manner you describe, would you be so kind to please record, narrate, and post it here?

I think it would have very high entertainment value.

Whatever happens will be a matter of public record that you can look up for yourself and draw your own conclusions. I shouldn't have to do everything for you.

 

[Mutineer]

Whatever happens will be a matter of public record that you can look up for yourself and draw your own conclusions. I shouldn't have to do everything for you.

The irony of Ground workers being kicked out of their building to work three times as hard in poor weather in order so that the Express lap-dogs can be more comfortable while doing next to nothing is believable.

I also think it is hilarious.

I believe your story is true, and will probably work out very close to what you say.

Although you do not see the humor in your story, I do.

Thanks for sharing.

 

[bacha29]

The irony of Ground workers being kicked out of their building to work three times as hard in poor weather in order so that the Express lap-dogs can be more comfortable while doing next to nothing is believable.

I also think it is hilarious.

I believe your story is true, and will probably work out very close to what you say.

Although you do not see the humor in your story, I do.

Thanks for sharing.

It is a bit amusing especially when you consider the number of Express letter and jewelry box carriers who for too long believed that Fats and his so called "family" will always keep them free from harm and safe from a changing industry only to find themselves being unceremoniously disposed of like hamburger wrappers blowing out the car window.

 

[zeev]

It is a bit amusing especially when you consider the number of Express letter and jewelry box carriers who for too long believed that Fats and his so called "family" will always keep them free from harm and safe from a changing industry only to find themselves being unceremoniously disposed of like hamburger wrappers blowing out the car window.

A lot of Express bleeds purple and orange with GFT and PSP they buy the swag and the stock and Freddy is hoping he can fool enough at Ground so he can dump them in a ravine.

 

[FedupExpress]

Honestly I think the merger is just supposed to buy some time from the inevitable shut down of the company.

 

[Gone fishin]

Honestly I think the merger is just supposed to buy some time from the inevitable shut down of the company.

Let’s get our severance and get outta here.when the lights go off. Younger people start making your way to the door

 

[bbsam]

Pretty much what happened in Canada. If this doesn't kill off the contractor model, the racketeering lawsuit will finish it off if it gets class action status.

I don’t see it going class action mainly because the plaintiff has no need or desire for it to in my opinion.

Class action is long and drawn out and often brings only small changes at the margin.

This is different. It has the attention of courts, the industry, and politicians. FedEx is in a difficult spot. Settling is hard to do while “not admitting wrongdoing”.

I’ve also been advised by a very knowledgeable broker that this former contractor is incredibly sharp with equally top tier legal representation.

That’s what happens when the entire leadership of a company is a bunch of “yes” people.

 

[bbsam]

He won’t need to. That racketeering case might make a court look at it if it gets that far, but that seems doubtful to me.

Why do you think that?