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KY AG Among Those Urging Fedex Ground To Classify Drivers Properly

26 Jun, 2009 WorkersCompensation.com

                               
Frankfort, KY (CompNewsNetwork) - Attorney General Jack Conway is among a group of eight attorneys general from across the country spearheading an effort to bring FedEx Ground in line with state employee classification laws.

In a letter sent today to FedEx Ground, the group of attorneys general expressed concern that FedEx may be treating many of its drivers as independent contractors rather than employees. An improper classification could allow the company to avoid paying certain taxes, but would also 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 General Conway and the attorneys general of Iowa, Kentucky, Missouri, Montana, New Jersey, Ohio, Rhode Island and Vermont. The effort is led by Attorneys General Steve Bullock of Montana and Richard Cordray of Ohio.

"Misclassifying employees is a way for a company to shirk its obligations to its employees and the protections they've been guaranteed. It would also allow a company to skirt paying the taxes it owes," said General Conway. "By joining with my counterparts 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."

In an effort to bring the states' concerns to the forefront, the attorneys general have formed a working group to determine how best to represent those interests and to ensure they are taken into consideration when the company considers any changes to its current business practices.

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