In recent years, FedEx faced criticism for its treatment of independent contractors. Many of them claim increased duties and risks without proper benefits and compensation. In other words, the independent contractors are supervised similarly to the employees while denied the law protection and bonuses of full-time employment. For example, FedEx sets the requirements for contractors on the vehicle’s appearance, maintenance, and operation. However, the company does not provide the vehicles or compensate the contractors for the insurance and maintenance costs. Moreover, FedEx demands a set amount of working time from the contractors, which is more similar to the full-time employment contract. On the other hand, in independent contract cases, the company usually just provides the amount of work without regulating the process, only considering the result. Furthermore, the organization generally pays for the overall accomplished order in these types of contracts (Dubal, 2018). This practice contradicts FedEx’s actions, which currently pays its contractors per delivery numbers, types of deliveries, and safety records. Thus, FedEx’s current treatment of its independent contractors is similar to that of its full-time employees.
To resolve this issue, FedEx needs to revise the delivery agreement with its independent contractors. The main problem with FedEx’s current approach is that the independent contractors have no “say” in the supposed agreement. Therefore, FedEx must negotiate basic rights, duties, and responsibilities with its independent contractors. The finalized delivery agreement should reflect the essence of the independent work. In other words, as a result of these changes, the contractors need to have an opportunity to manage their tasks and select their working hours on the basic level. This approach to the issue will guarantee FedEx’s compliance with legal requirements and allow the company to avoid violating the law and rights of independent contractors.
Reference
Dubal, V. B. (2018). Employment law: the employee vs. independent contractor dichotomy. The Judges’ Book, 2(1), 10. Web.