by Doug Cunningham
The oldest profession has a lot of independent contractors
FedEx could soon be facing litigation from three states for labor violations. Jesse Russell reports:
The attorneys general of Montana, New Jersey, and New York are planning a joint lawsuit against package delivery corporation FedEx for alleged labor law violations.
At issue is the company’s hiring of drivers and classifying them as independent contractors instead of employees. By calling the drivers independent contractors FedEx avoids providing workers’ compensation and the employees are not covered under state labor laws.
In a statement New York Attorney General Andrew Cuomo said the misclassification denies the drivers “employment rights they are guaranteed by law.”
The company has until October 27 to justify why a lawsuit should not be filed. In 2007 the Internal Revenue Service declared that FedEx Ground workers are in fact employees.
The company was hit with a $319 million fine that year. Earlier this year attorneys general in New Jersey and seven other states sent a letter to FedEx warning the company they were concerned about the classification practices.
More than 45 class-action lawsuits have been filed in state and federal courts regarding this issue.
Subscribe to the Rightardia feed: feeds.feedburner.com/blogspot/IGiu
Netcraft rank: 6660 http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
No comments:
Post a Comment