What to Include in the Compensation Section of Your Employee Handbook
One of the most essential parts of your employee handbook as a FedEx Ground contractor is the Compensation section. This section doesn’t just outline how and when employees are paid; it protects your business and ensures compliance with local, state, and federal regulations.
Clear compensation policies eliminate confusion, set expectations, and help you stay compliant.
What Should the Compensation Section Cover?
A well-written compensation section should answer key questions like:
How are drivers paid? (Daily rate, hourly, per stop?)
When are drivers paid? (Weekly, bi-weekly, or monthly?)
How is pay delivered? (Direct deposit or paper check?)
Here’s what else you should consider including:
Pay Methods: Outline whether you offer direct deposit, physical checks, or other options.
Pay Schedules: Define how often employees are paid and whether pay is issued in arrears.
Deductions: Detail all required and voluntary deductions—federal and state taxes, insurance premiums, and any other withholdings. Be sure to explain how employees can make changes.
Final Pay: Describe how final wages are handled when an employee quits or is terminated—including any required timelines or documentation.
Keep in mind: Compensation laws can vary widely by state. Be sure to check your local requirements when writing this section.
Want to see an example? Download our free sample Compensation section of the FedEx Ground Employee Handbook.
