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Good one. I was aware of the FedEx practice, which always seemed predicated on the continued successful efforts of someone's fairly godmother - rather than the actual independent contractor criteria itself. But now apparently the coach (or in this case the FedEx truck), has turned back into a pumpkin.

Was actually half-suprised that the equally high-profile issue of the independent contractor drivers for Uber was not briefly addressed here. Maybe that one rises above the sniff test, although I thought I detected something in the air . . .

Chris makes an excellent point. Another Compensation Cafe contributor claimed that Uber topic, for a separate later post.

I breathlessly await the determination that McDonald's franchisees are employees.

Believe Seattle made some such determination in denying local franchises the "small biz" exception from their $15/hr minimum wage rule invoked on April Fools day 2015.

As a former employee of FedEx's major competitor, I can assure you that FedEx's practice was well-known. It was one of a couple of major areas where my employer felt FedEx had a major, unfair competitive advantage. My former employer was lobbying heavily in Washington to try, from their perspective, to "level the playing field".

I can't help but think there are quite a few people dancing with joy where I used to work over this ruling.

It really messes up market pricing over periods of time when you have such a small pool of major competitors in your industry. One delivery giant didn't report any employee wages at all and another once shifted its pay policy to emphasize a stronger more aggressive contingent pay policy. The latter situation had one rival worried that it was "overpaying compared to the norm." They did a head-slap when advised to ignore the base pay and compare total comp numbers. The TC figures tracked appropriately with their strong base and minimal bonus.

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