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Stupid arguments about the Ground business model
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<blockquote data-quote="dmac1" data-source="post: 4739196" data-attributes="member: 60252"><p>The reason for the discussion is that there is still a legal question of whether the current agreement meets the legal definitions of independent contractor status under state and federal law. It doesn't matter if current contractors 'feel' happy with all the control. Bacha and myself just point out that 'feelings' are not the issue. My opinion is that the contract at best creates a franchise or possible co-employer' condition and Fedex has simply made changes the reduce their risk of ever being challenged do to the massive expense and massive financial advantage fedex has, and the massive cost any 'contractor' would have in fighting. The government won't bother enforcing the law as long as they collect the tax revenue. I don't think there is much chance of change, but the minute fedex thinks it can save a tenth of a penny, they CAN unilaterally cancel all the contracts, so buying a 'business' that can be immediately cancelled may not be a wise investment. If you got your routes for free, and have almost nothing invested, and can make a living by underpaying others, and are comfortable with it, go for it.</p></blockquote><p></p>
[QUOTE="dmac1, post: 4739196, member: 60252"] The reason for the discussion is that there is still a legal question of whether the current agreement meets the legal definitions of independent contractor status under state and federal law. It doesn't matter if current contractors 'feel' happy with all the control. Bacha and myself just point out that 'feelings' are not the issue. My opinion is that the contract at best creates a franchise or possible co-employer' condition and Fedex has simply made changes the reduce their risk of ever being challenged do to the massive expense and massive financial advantage fedex has, and the massive cost any 'contractor' would have in fighting. The government won't bother enforcing the law as long as they collect the tax revenue. I don't think there is much chance of change, but the minute fedex thinks it can save a tenth of a penny, they CAN unilaterally cancel all the contracts, so buying a 'business' that can be immediately cancelled may not be a wise investment. If you got your routes for free, and have almost nothing invested, and can make a living by underpaying others, and are comfortable with it, go for it. [/QUOTE]
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