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Attorneys general threaten FedEx suit

October 23, 2009
Staffing Industry Analysts North American Daily News

Attorneys general from New York, New Jersey and Montana announced Tuesday they plan to sue FedEx Ground Package System Inc. after Oct. 27 over its classification of drivers as independent contractors.

The attorneys general argue the drivers should be treated as employees not contractors because of the level of control the FedEx maintains. FedEx prescribes hours drivers work, performance of tasks, uniforms (even down to the color of socks) and opportunities for non-FedEx work are limited, according to the attorneys general.

"By classifying their drivers as independent contractors rather than employees, FedEx Ground is denying the drivers the rights and protections afforded to all workers in our state," said Montana Attorney General Steve Bullock. "And in the process, FedEx Ground is shifting its tax obligations onto hardworking Montanans."