FedEx Overhauls Contractor Model in California

Law360, New York (September 21, 2007, 12:00 AM EDT) -- FedEx Ground has announced plans to scrap its contractor model in California, just a month after a state appeals court upheld a ruling that said drivers who had sued the company were employees, not independent contractors.

In a Thursday memo, FedEx Ground President Dave Rebholz said the package delivery company was offering incentives to entice single-route drivers to expand their business by taking on multiple routes or put their single routes up for sale.

“In the face of growing legal and regulatory uncertainty, we must take...
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