FedEx Custom Critical ???? Are they what they say they are??

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zero3nine

Veteran Expediter
I am an independent contractor.

I have my own commercial liability and cargo insurance.

I provide my own tracking and communications.

I have my own local and interstate authorities.

I am a freight forwarder. I am a motor carrier. I am an indirect air carrier. I am a broker.

I send invoices to my clients, which they pay on net 15 terms. Brokers pay me by wire transfer.

The only time there is any logo besides my own on the van is when I put magnetic signs on to do local courier work.

100% inependent, beholden to no one.

fired at you from my Droideka
 

ATeam

Senior Member
Retired Expediter
There is an interesting article in the Dollars and Sense section from jan 25 2005, Independent contractor classification.
The next article is interesting too. Seems a lawyer in a case showed that when a carrier dispatched a contractor that had the carriers signs on his truck and was wearing a hat with the carriers logo on it he should be classifed as a employee. The court agreed.

I'm not going to get into a contest that points to magazine articles and court cases that talk about other companies and other drivers in other situations in other states. For every one you found that supports your view, I could fine one that supports mine. As dabluzman1 said, this is an ongoing battle.

What I can tell with 100% certainty is that Diane and I are independent contractors under every standard that actually matters. If the laws or regulations changed such that our independent contractor status disappeared or came into question, we would adapt then. Until then, we are independent contractors and will continue to operate as such.

In the seven years we have been in this business, there have always been some on the Open Forum who argue that FedEx Custom Critical contractors are not true independent contractors. It is a delusion they cherish and I have not the power or need to burst their bubble.

It seems to me that some of the people who are eager to make us not real independent contractors are running a personal status or self-esteem script. They are caught up in a "fleet owner is better than driver" theme or "own authority is better than leased."

Diane and I outgrew that game many years ago. If personal status or "better-than" career positions mattered to us, we would have stayed in our white collar professions instead of becoming truckers. Our self esteem is not dependent on our place in a social pecking order.

We are not independent contractors so we can feel good about ourselves. We are independent contractors because it helps achieve the goals and lifestyle we seek as expediters.
 
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ATeam

Senior Member
Retired Expediter
100% inependent, beholden to no one.

That notion of beholden to no one is misplaced. Diane and I are not good expediters because we are beholden to no one. We are good expediters because we are at our carrier's and customers' service.

Once we agree to a load, all personal interests give way to customer interests. We are 100% beholden to our carrier, shippers and consignees, because we have agreed to serve them and our word is good.
 

dabluzman1

Veteran Expediter
Retired Expediter
I think you mean "remuneration."

And no, I'm not obliged to do anything for anyone.


fired at you from my Droideka
Your are right on both counts, I am a terrible typist and
you are not obliged to do anything for anyone.....but then you would be nothing to everyone ( independent contractor-wise) as no-one would even know you exist.:cool:
 

davekc

Senior Moderator
Staff member
Fleet Owner
Based on past IRS dealings, if one stays close to the vest on the IRS independent contractor guidelines, you shouldn't have any problem. Anything can be challenged and has, but few in the trucking industry unless it is flagrant have ever been turned over as employees and it is actually documented.
But I digress, as one can call the IRS with the same question to 10 different agents and get 10 different answers.
Have a responsible account/attorney that is in the know.
 

zero3nine

Veteran Expediter
That notion of beholden to no one is misplaced. Diane and I are not good expediters because we are beholden to no one. We are good expediters because we are at our carrier's and customers' service.

Once we agree to a load, all personal interests give way to customer interests. We are 100% beholden to our carrier, shippers and consignees, because we have agreed to serve them and our word is good.

Allow me to clarify my statement.

I am beholden to no one. By this, I mean that I am not obligated to run any particular load. If somebody calls me and I'm not within a reasonable range, or under another load, then I can't very well run it, can I?

Since you are leased to Fedex, you cannot run loads for anybody else, is that not correct? Therefore, while you are in fact a contractor, you are not an independent contractor. You can refuse loads, true enough. However, without your own authorities and insurance policies in place, you can't get your own load from boards like DAT360 or getloaded.com, right? Right.

If I am not mistaken, you are on a group insurance policy which you obtained through channels at Fedex. You are simply not covered to do work for anybody else.

I can walk into any shipper and negotiate a load on the spot, present my insurance certificates, even have them named on a cert within 30 minutes and faxed directly to them by my insurance carrier (during west coast business hours), and drive out with their freight if they decide to hire me. I can tender airfreight for unknown shippers by performing ID checks and site inspections on the fly.

Nobody is saying you're not a good expediter simply because you're not independent, nothing could be further from the truth. I have merely taken the same steps anybody else can take and formed a corporation, filed the DBA, got my EIN number, got the business checking account and line of credit, obtained my own CA and GA DOT, USDOT, broker's authority, IAC authority, freight forwarder's authority, joined IATA and FFA, and got my CSA2010 and IMDG certifications.

I am an independent contractor. Fedex may call you an Independent Contractor, and the IRS or Labor Board may view you as such, but you are in fact only a contractor unless you operate autonomously.

That's the distinction I cling to. My word is good as well, and when I agree to a load, it gets done for the price agreed upon and within the agreed upon time frame. EVEN IF it ends up costing me money. I mail, fax, or email invoices for the jobs that I do. I follow up with phone calls and get paid within two weeks. Jobs under 500 miles are given a flat rate. Beyond that range, it's per-mile plus FSC.

I got into the van a few years ago because I saw all the new regulations coming, and I wanted to stay out on the road and have fun getting paid to see the country. I don't like being limited as to how far or where I can go. The van affords me freedom I didn't have in the Peterbilt, or sitting behind a desk coordinating logistics for other people.



Beholden to no one. As I said.
 

pookie8me

Not a Member
Just cause your leased to Fedex does not mean you can't do other things......they....Fedex have backhaul list with over 17 companies you can find work on.....fedex gets 15% of load you find....also you can trip lease or even run under another company.....if you are out of service you can do what you like...with the right insurance and such....blah blah blah...we all know.....


WELL listen here.........I read lease 3-4 times...and can read more if you like......it does not say I need to have 8.5 of free space at all times.....says nothing at all......nothing.....I mean nothing....says I have to run the way I want..........did you hear that? does not say you have to take load if load changes and you can't take it...............does not say that.....go ahead and say it always happens....well it's wrong and you should say something......just because it happens all the time does not mean it's right...............

they have to pay you to have signs.......LOL suckers.....they are called advertising signs right in lease......suckers......you don't have to wear costume either.......that is correct....suckers....this forum is good cause it shows how the blind lead the blind........suckers....LOL

Listen we run loads night after night with hardly any sleep........and hardly any room......We don't mind....but if we need a place to sleep it's for good reason...........don't tell me how one time you slept on freight or one time this or that.......I can stay up 36-48 hours and drive...so what.....but in long run you will be unsafe and take 3 days to recover......this will wear on you and is unsafe.......oh btw I believe we were almost 2 hours early for pu.......so get another truck....threatening to be put OOS is wrong........wrong..

fastrod is correct

I guess it's like trying to get my dogs to drive the van....it's never gonna happen......like some of you learning how things really are


I agree with Phil....i think it was him....how company does all the work setting up work and the bill collecting etc.....I like them working for me...

once again it's not in lease...........I do not have to run load I did not accept.......lease says I run the way I want to.......you guys better read.......hey I'm wrong all the time.....and sometimes I have to eat my words.....that's why I went back to read lease.........I am right.........LOL
 

xiggi

Veteran Expediter
Owner/Operator
Just cause your leased to Fedex does not mean you can't do other things......they....Fedex have backhaul list with over 17 companies you can find work on.....fedex gets 15% of load you find....also you can trip lease or even run under another company.....if you are out of service you can do what you like...with the right insurance and such....blah blah blah...we all know.....


WELL listen here.........I read lease 3-4 times...and can read more if you like......it does not say I need to have 8.5 of free space at all times.....says nothing at all......nothing.....I mean nothing....says I have to run the way I want..........did you hear that? does not say you have to take load if load changes and you can't take it...............does not say that.....go ahead and say it always happens....well it's wrong and you should say something......just because it happens all the time does not mean it's right...............

they have to pay you to have signs.......LOL suckers.....they are called advertising signs right in lease......suckers......you don't have to wear costume either.......that is correct....suckers....this forum is good cause it shows how the blind lead the blind........suckers....LOL

Listen we run loads night after night with hardly any sleep........and hardly any room......We don't mind....but if we need a place to sleep it's for good reason...........don't tell me how one time you slept on freight or one time this or that.......I can stay up 36-48 hours and drive...so what.....but in long run you will be unsafe and take 3 days to recover......this will wear on you and is unsafe.......oh btw I believe we were almost 2 hours early for pu.......so get another truck....threatening to be put OOS is wrong........wrong..

fastrod is correct

I guess it's like trying to get my dogs to drive the van....it's never gonna happen......like some of you learning how things really are


I agree with Phil....i think it was him....how company does all the work setting up work and the bill collecting etc.....I like them working for me...

once again it's not in lease...........I do not have to run load I did not accept.......lease says I run the way I want to.......you guys better read.......hey I'm wrong all the time.....and sometimes I have to eat my words.....that's why I went back to read lease.........I am right.........LOL

Anyone have this persons sign?
 

pookie8me

Not a Member
Wow I'm finding more and more info......

"Truck drivers are held responsible for the safe operation of their vehicle. If a driver gets in an accident, regardless of the cause, the driver is responsible. Whether your load shifts, you have a mechanical failure, you slide off the road in hazardous conditions, or driver error is the cause – it makes no difference. An accident is an accident in the eyes of the law, and the eyes of trucking companies, and a driver must be certain that the truck is safe to operate, the conditions are safe to drive in, and the load is properly secured. You will find circumstances on occasion where a driver is cleared of responsibility for an incident, but this is rarely the case."

In a decision issued on March 15, 2010, Department of Labor Judge Daniel Leland ruled that New Prime, Inc. (also known as “Prime“) illegally fired Cynthia Ferguson because she refused to continue operating a commercial vehicle in hazardous weather. In Ferguson v. New Prime, Inc., Ferguson, a leased driver for Prime, was fired shortly after she refused to driver through Donner Pass in the Sierra Nevada Mountains with a loaded tractor-trailer set during hazardous weather. Paul Taylor of the Truckers Justice Center filed a claim on behalf of Ferguson with the Department of Labor alleging that Prime illegally fired her. Prime alleged that it fired Ferguson because she operated the truck at a deficit.

Judge Leland ordered Prime to reinstate Ms. Ferguson as a driver, pay back wages of more than $ 26,600, pay $ 50,000 as compensation for Ferguson’s emotional distress, and pay $75,000 in punitive damages. Judge Leland also ordered Prime to pay Ms. Ferguson’s attorney fees, and remove unfavorable information from her DAC Report.

Is Ms Ferguson’s performance as a driver relevant in this lawsuit? No – not at all. As interpreted by the FMCSA, The Surface Transportation Assistance Act (STAA) 49 C.F.R. Section 392.14 clearly states:

“The driver is clearly responsible for the safe operation of the vehicle and the decision to cease operation because of hazardous conditions.”
 

jansiemoo

Seasoned Expediter
Wow I'm finding more and more info......

"Truck drivers are held responsible for the safe operation of their vehicle. If a driver gets in an accident, regardless of the cause, the driver is responsible. Whether your load shifts, you have a mechanical failure, you slide off the road in hazardous conditions, or driver error is the cause – it makes no difference. An accident is an accident in the eyes of the law, and the eyes of trucking companies, and a driver must be certain that the truck is safe to operate, the conditions are safe to drive in, and the load is properly secured. You will find circumstances on occasion where a driver is cleared of responsibility for an incident, but this is rarely the case."

In a decision issued on March 15, 2010, Department of Labor Judge Daniel Leland ruled that New Prime, Inc. (also known as “Prime“) illegally fired Cynthia Ferguson because she refused to continue operating a commercial vehicle in hazardous weather. In Ferguson v. New Prime, Inc., Ferguson, a leased driver for Prime, was fired shortly after she refused to driver through Donner Pass in the Sierra Nevada Mountains with a loaded tractor-trailer set during hazardous weather. Paul Taylor of the Truckers Justice Center filed a claim on behalf of Ferguson with the Department of Labor alleging that Prime illegally fired her. Prime alleged that it fired Ferguson because she operated the truck at a deficit.

Judge Leland ordered Prime to reinstate Ms. Ferguson as a driver, pay back wages of more than $ 26,600, pay $ 50,000 as compensation for Ferguson’s emotional distress, and pay $75,000 in punitive damages. Judge Leland also ordered Prime to pay Ms. Ferguson’s attorney fees, and remove unfavorable information from her DAC Report.

Is Ms Ferguson’s performance as a driver relevant in this lawsuit? No – not at all. As interpreted by the FMCSA, The Surface Transportation Assistance Act (STAA) 49 C.F.R. Section 392.14 clearly states:

“The driver is clearly responsible for the safe operation of the vehicle and the decision to cease operation because of hazardous conditions.”

You were supposed to give FedEx EIGHT FEET of available space at all times. You were in breach of contract. The only way this even slightly-SLIGHTLY- has something to do with you is your persistence that FedEx was demanding you take the load YOU deemed unsafe due to your faulty understanding of the contract. Did you tell the dispatcher "I can't take this load, it's unsafe for my A UNIT to take!" because "I don't have room for this load" is what they heard, imho.
Which means, at the end of this debacle, your refusal of this load, as said a dozen times now, was not about safety as it was about your failure to fulfill your contract.
May I ask, how long were you with FedEx? And in this time you never had one skid become two? Because this whole ordeal you had at this shipper was the nail in your coffin, honey. You pointed out to FedEx, quite loudly, I'm sure, that you DID NOT HAVE ENOUGH ROOM TO HAUL A "B" LOAD AT ALL TIMES.

Should you have hauled it since you wouldn't have proper rest to safely do the load? ABSOLUTELY NOT.
But showing up at the shipper and realizing it wouldn't work, you should have expected a SERVICE FAILURE at best, and eventually, yep, your LEASE PULLED.
 

pjjjjj

Veteran Expediter
....I was promised that I could make 3,000 per week......

Keyword = could

You absolutely could.

Big difference between 'could' and 'will'.

Define the word 'make'. To some it is gross revenue to the truck. To others it is net income after all expenses.

Nobody call tell you what you can hope to 'make' because there are too many variables, too many people talking in oranges while the audience listens in apples, too many personal differences, attitudes, preferences, fears, goals, family commitments, household obligations, health issues, types of self reward (I'm talking about the type who will go home for time off while in the midst of a great roll to reward themselves for having made great money for a week or two, because they can), vehicle types and equipment, prejudices and biases, memories of bad experiences which are associated with certain areas, etc.

When EO members advise others to read back in the forums for a couple of years, their intent is not to be unhelpful and unfriendly, it is to help them discover the questions that you only they can answer for themselves.
 

pookie8me

Not a Member
Hey Jan, I do not have contract that says 8 feet.....I do not have contract that has anything you keep saying......done over 90 some loads in 6 months over 85k miles......once again I have read lease several times.....does not say anything at all your talking about......nothing....we accepted load for 1 skid.....was not 1 skid load...was unsafe for us....If I can do something then I do it...if it's unsafe then it's safe....once again how can you even think you know what my lease says? well your wrong.....it is illegal what happened.......

Once again.......my lease does not say anything about having a certain amount of space.....but it does say the owner runs the truck when they want...where..and how.....also says can accept and decline loads as owner wishes......when a load changes it's a new load!

once again......lease mentions nothing about half the stuff you guys talk about......Well at least I'm a safe driver!
 

pookie8me

Not a Member
Hey Jan, I do not have contract that says 8 feet.....I do not have contract that has anything you keep saying......done over 90 some loads in 6 months over 85k miles......once again I have read lease several times.....does not say anything at all your talking about......nothing....we accepted load for 1 skid.....was not 1 skid load...was unsafe for us....If I can do something then I do it...if it's unsafe then it's unsafe....once again how can you even think you know what my lease says? well your wrong.....it is illegal what happened.......

Once again.......my lease does not say anything about having a certain amount of space.....but it does say the owner runs the truck when they want...where..and how.....also says can accept and decline loads as owner wishes......when a load changes it's a new load!

once again......lease mentions nothing about half the stuff you guys talk about......Well at least I'm a safe driver!
 

Dreamer

Administrator Emeritus
Charter Member
Hey pookie...

How bout a little common sense. The requirement to QUALIFY to lease is to be able to haul 8 feet of cargo.

If their requirement is 8 feet of cargo space...... what on Earth makes you think that requirement changed.. because you decided not to give it to them!



Bottom line. You failed to provide equipment that met their requirements. You now have no job.


You need to quit insulting people who are merely pointin out you failed to provide the service you were contracted for.


Dale

Posted with my Droid EO Forum App
 

layoutshooter

Veteran Expediter
Retired Expediter
It is really hard to believe this thread is STILL going on!! I have a lease with FedEx. To get that lease I meant the requirements to GET the lease in the first place. Those requirements set MINIMUMS for usable cargo space, number of straps, pads, bars etc. I exceed all requirements.
 

greg334

Veteran Expediter
Dale,
I'm wondering about something, and I think you will answer it straight, is there any mention to the capacity in the contract?
 

pookie8me

Not a Member
Dale, my lease does not say what space I must have open to use.......could you show me where it does?

Once again...what's in the lease is what counts...not what is on a website....not what you think it is.....not what you or I have been told.....the lease says what is needed....please show me?

unsafe is unsafe

a lease is a lease......load offer=contract......load changes then contract changes.....it's real simple....oh I get it...you guys are just messing with me now....LOL...you got me.....keep saying silly things to get me going...HAHAHAHAHHAHAAH....thanks guys your so funny.....you got me

Hey I licked my wounds and I doubled checked lease 3-4 times....what you guys say is no where to be found.......not even close.......
 

pookie8me

Not a Member
gregg.........i'm always straight.....LOL.....I can say there is no mention of any measurements for truck in lease....nothing.....not one mention.....nothing at all..........in fact it supports what I've been saying the whole time........I'm telling you guys.....it's not there......the things you talk about.....


does not look good for you know who.................
 
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