Top
Stories

Latest News

FedEx to Pay $2.3 Million Over Independent Contractors

The settlement follows a yearlong investigation by Montana that found FedEx Ground drivers are employees, not independent contractors, and that FedEx owed unemployment taxes, penalties and interest, according to the attorney general’s office.

  • October 21, 2010
  • Comments (0)

FedEx Corp. will pay the state of Montana a $2.3 million settlement over misclassification of FedEx Ground drivers as independent contractors, Montana Attorney General Steve Bullock announced Oct. 21.

The settlement follows a yearlong investigation by Montana that found FedEx Ground drivers are employees, not independent contractors, and that FedEx owed unemployment taxes, penalties and interest, according to the attorney general’s office.

Montana will reimburse drivers $1.1 million for unemployment insurance coverage that was paid by them. The remaining $1.2 million will go to the state’s general fund.

FedEx did not admit wrongdoing in the settlement.

“As a result of the investigation, FedEx will change its business practices in Montana,” according to the attorney general’s office. FedEx Ground will “implement a new pickup and delivery model in Montana,” the office reported.  

Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail editors@workforce.com.

 

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Leave A Comment

Guidelines: Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. We will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. You are fully responsible for the content you post.

Daily Q&A

What Is the Secret to Motivating People in Tough Times?

Like many organizations, we're forced to try and do more with less. How do we still innovate and keep people motivated/inspired to keep giving their all?

—Strapped for Resources, supervisor, manufacturing, Flint, Michigan

Read Answer

Stay Connected

Join our community for unlimited access to the latest tips, news and information in the HR world.

  • Workforce Technology (Monthly)

    Covering the latest technology trends, tools and applications that are shaping the workforce in the 21st century. Delivered the 2nd Wednesday of each month.

  • Dear Workforce (Bi-weekly)

    See what HR professionals are asking, and what Workforce Management experts are saying. Delivered the 1st and 3rd Thursday of each month.

  • Workforce Benefits (Bi-weekly)

    Stay current on all aspects of employee benefits, from health care to retirement issues. Delivered on Wednesdays.

  • Workforce Week (Weekly)

    Free weekly update on the trends in HR and new tools added to Workforce.com. Delivered each Tuesday.

  • Workforce Talent (Bi-weekly)

    See the recruiting, talent development and retention strategies of top companies and get the resources for effective talent management. Delivered the 2nd & 4th Thursday of each month.

  • Workforce Training (Monthly)

    Stay current on the latest strategies and resources for training and developing your workforce talent. Delivered the 4th Wednesday of each month.

HR Jobs

View All Job Listings

Search