an equal and opposite reaction
Case Details for "FedEx Corp"
Investigation of FedEx Ground regarding classification of its drivers
Attorneys general from Montana and seven other states asked FedEx Corp. to ensure that FedEx Ground properly classifies its drivers to comply with state employee protection laws.
Thirty states are investigating FedEx Ground to determine if the company is misclassifying FedEx drivers as independent contractors through its owner-operator model. And more than 45 class-action lawsuits have been filed in state and federal courts against the company's classification of drivers.
In a joint letter Thursday to FedEx, the eight attorneys general cited shared concerns about workers' compensation and unemployment insurance, wage-and-hour laws and protection of workers' civil rights.
"Each of our states has a responsibility under our respective laws to protect a broad range of interests associated with the employment status of an individual," said the letter sent jointly by Montana's Attorney General Steve Bullock and attorneys general from Iowa, Kentucky, Missouri, New Jersey, Ohio, Rhode Island and Vermont.
The letter said the eight states have formed a working group to address changes in FedEx Ground's business model to ensure proper classification of workers.
The company maintains that drivers who are allowed to own multiple routes should be classified as independent contractors. But as contractors, the workers don't get benefits, are responsible for their own equipment and are precluded from directly organizing under federal labor laws.
FedEx has about 13,000 of these employees nationwide.
Posted on:06/25/2009
Company: FedEx Corp
Affected Class: FedEx Corp ground drivers
Scope: Nationwide
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