Independent Delivery Driver Contract For Fedex
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FAQ
Become an Independent FedEx Delivery Contractor: A Step-by-Step Guide Step 1: Determine Eligibility. Step 2: Contact FedEx. Step 3: Determine Where Routes Are Available Near You. Step 4: Complete Required Training. Step 5: Route Financing. Step 6: Choose a Vehicle. Step 8: Start Delivering Packages.
In addition to their weekly compensation, contractors receive bonuses for things such as customer service and safety, among other items. From the weekly revenues paid by FedEx, contractors are then required to pay their business expenses, including employee salaries, fuel, insurance, etc.
By classifying the drivers as independent contractors, FedEx has avoided paying legally required benefits like health insurance, worker's compensation, and other fringe benefits. However, a Federal Court has decided that FedEx ground drivers were misclassified as independent contractors in the past.
It used independent contractors as a lower-cost, flexible workforce, which FedEx found attractive. Primarily an airline, FedEx wanted to get into the ground business, so it acquired RPS in 1998. By 2004, it had 16,200 owner-operators, who each took on a route and all the responsibilities of running their own business.