FedEx's USA contractors face incorporation

FedEx (USA) has notified its 12,000 contractors that they must comply with new standards in order to continue operating as contractors to FedEx.In a move that echoes Australia Post's changes to its relationship with Mail Contractors in 2002/2003, FedEx's independent contractors must be incorporated under US state law instead of being organised as partnerships, sole proprietorships or similar designations.The standards also include a requirement that independent contractors treat their personnel as employees.These changes seem to be in response to complaints that FedEx drivers have incorrectly been classified as contractors instead of employees.FedEx has given its contractors at least 180 days to comply with the new standards. There is a monetary incentive for early adopters.

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