Attorney General Patrick C. Lynch is among eight attorneys general spearheading an effort to bring FedEx Ground in line with state employee classification laws.
In a letter sent today to FedEx Ground, the eight attorneys general—all representing states with very different employment laws—expressed concern that FedEx may be treating its drivers as independent contractors rather than employees. An improper classification could allow the company to avoid paying payroll taxes but would leave workers without the basic protections they are guaranteed, such as workers’ compensation insurance, unemployment insurance, wage and hour protections, civil rights protections, and a minimum wage.
The letter was signed by Lynch and the attorneys general of Iowa, Kentucky, Missouri, Montana, New Jersey, Ohio, and Vermont.
“Misclassifying employees is a way for a company to shirk its obligations to its employees and the protections to which they are entitled,” Lynch said. “Such a misclassification would also allow a company to skirt paying the taxes it owes and gain an unfair advantage over its competitors. By joining with my colleagues in other states, we’ve signaled our willingness to work with FedEx Ground to make sure workers are protected under state laws and that the company—not taxpayers—are providing the benefits these workers deserve.”
A PDF copy of the attorneys general’s letter is attached.
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Department or agency: Department of the Attorney General
Online: http://www.riag.ri.gov
Release date: 06-25-2009