Friday, September 03, 2010

Conway sues FedEx over how it classifies drivers

Kentucky Attorney General Jack Conway filed suit Thursday against Federal Express contending that the delivery company misclassifies drivers to avoid paying taxes.

The suit, filed in Franklin Circuit Court claims the company wrongly considers its drivers independent contractors and not employees. Conway contends that the misclassification has denied FedEx drivers workers’ compensation insurance, unemployment insurance and wage-and-hour protections.

The suit asks the court to require FedEx to classify the drivers as employees, rather than independent contractors. The suit also seeks penalties for violations of Kentucky’s unemployment-compensation and consumer-protection statutes, as well as for failure to remit withholding taxes from wages paid to its drivers.

Conway’s office said FedEx has about 500 drivers in Kentucky. It said the suit will seek back payments of at least $10 million going back to 2000. Full Story.....

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