Why did fedex classify the drivers as independent contractor

Reference no: EM133671390

Problem

On page 512 of the textbook the author states "The crucial factor in determining whether someone is an independent contractor or an employee is the degree of control that the principal has over that party." He then gives a list of "critical factors" in determining independent contractor status. Read through the list and then read the Critical Legal Thinking Case at the bottom of that page entitled "Are FedEx Drivers Independent Contractors?" The court in that case ruled that the drivers were not actually independent contractors as FedEx had called them but they were employees. In an original post, discuss the following with your classmates:

A. From the list of critical factors, select two that you think clearly indicate the FedEx workers are employees. Are there any that indicate they are independent contractors?

B. Why did FedEx classify the drivers as independent contractors rather than employees? (What are some of the advantages to FedEx of the independent contractor classification?)

C. Did FedEx act ethically in classifying their employees as independent contractors?

Reference no: EM133671390

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