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Attorneys general tackle FedEx classification

June 29, 2009

A group of attorneys general from eight states wrote a letter to FedEx Corp. last week bringing forward concerns over the company's classification of FedEx Ground drivers as independent contractors. The letter suggests working together to ensure proper worker classification.

It cited state issues such as workers' compensation as well as unemployment insurance, wage and hour protections and civil right protections, which are commonly enforced by the states. "The proper funding of such programs, as well as the assurance that employees have the protections the law affords, is dependent upon proper employment classification," according to the letter.

Attorneys general signing the letter come from Montana, Iowa, Kentucky, Missouri, New Jersey, Ohio, Rhode Island and Vermont.

"We are happy to work with the attorneys general to answer any questions they may have," said Robert Boulware, manager of corporate communications for FedEx Ground. "The right of FedEx Ground independent contractors to own and operate their businesses has been repeatedly validated, most recently by the U.S. Court of Appeals for the D.C. Circuit. We are confident that our discussions with the AGs will be productive."

Lynn Rossman Faris, an attorney heading up litigation involving FedEx ground's independent contractor classification for its drivers, said the importance of the attorneys general's letter in the ongoing litigation cannot be overstated.

FedEx "is fond of accusing plaintiffs' lawyers of instigating litigation against it; here are the attorney generals of eight states (and I think there will be more) clearly putting FedEx on notice that its classification is patently bogus and should be changed," according to Faris.

Faris is co-lead counsel in the multi-district litigation titled "In Re FedEx Ground Package System Inc. Employment Practices Litigation," a centralized proceeding involving 60 cases representing 27,000 FedEx Ground drivers.