« Executive Pay Claw backs – Things Just (Almost) Got Real! | Main | “Oh, the Places You’ll Go!” with the Power of Thanks »

07/08/2015

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

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.

The comments to this entry are closed.