FedEx UPS Head on Collision!

Companies reporting to authorities about a rival's employment practices happen more often than you think!
According to Bloomberg, UPS may have played a role in prompting an investigation by state officials of FedEx's employment of 15,000 drivers as independent contractors.

Sour grapes, huge tax and benefits obligations for the 92,000 W-2 union drivers shelling out a hefty sum for the workers are just the tip of the iceberg. In the meantime FedEx's ground unit which accounts for about a fifth of the parent company's $38 billion in revenue bypasses these employer requirements claiming ground drivers are independent contractors and not employees. UPS claims this model is an unfair business practice and may have been the catalyst behind the tip off. Thanks UPS! http://www.aircargoworld.com/break_news/06252008d.htm

The courier business is not alone in the war on employers who misclassify workers as independent contractors. With 10.3 million people working as independent contractors and state and federal coiffeurs with record deficits, a bright line leading to a perceived tax revenue drain hole is drawn to companies that hire these workers.  Targeted industry employers like Home Depot and Allstate Corp. are all too familiar with the aggressive pursuit by the auditing agencies.

The number of cases on the legal stage on any given day should be enough to make any employer sit up and take notice regardless of the industry in the line of fire.