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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 Employees (Montana Settlement)

Date: 10/20/2010 (Date of Settlement)

Misconduct Type: Labor

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $2,300,000

Disposition: Settlement

Synopsis: The state of Montana reached a $2.3 million settlement with FedEx Ground Package System over its failure to pay unemployment insurance on behalf of its drivers, who, the state determined, had been misclassified as independent contractors. An audit conducted by the Montana Department of Labor and Industry determined that, under Montana law, the drivers should be considered employees of FedEx, which therefore owed unemployment taxes, penalties and interest. Under the settlement, FedEx denied any liability or wrongdoing.