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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

FedEx Corporation

Misclassifying Workers – Massachusetts Attorney General Lawsuit

Date: 07/15/2010 (Date of Settlement Announcement)

Misconduct Type: Labor

Enforcement Agency: State/Local

Contracting Party: None

Court Type: N/A

Amount: $3,045,000

Disposition: Settlement

Synopsis: FedEx Ground agreed to pay Massachusetts $3 million to settle claims alleging the company underpaid payroll taxes, worker’s compensation, and unemployment insurance by misclassifying drivers as independent contractors rather than employees. In addition, 13 drivers who were the subject of a 2007 administrative action (see FedEx instance, “Misclassifying Workers – Massachusetts Citations”) will receive $15,000 each. In settling, FedEx Ground did not admit to any wrongdoing.