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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 Citations
Date: 12/19/2007 (Date of Citations)
Misconduct Type: Labor
Enforcement Agency: State/Local
Contracting Party: None
Court Type: Administrative
Amount: $190,500
Disposition: Fine
Synopsis: The Massachusetts Attorney General’s Office cited FedEx Ground Package System, Inc. for intentionally misclassifying 13 drivers as independent contractors rather than as employees, failing to provide a proper paystub, failing to provide workers’ compensation, not paying overtime, and neglecting to deduct and withhold state income taxes. In addition to assessing monetary penalties, the citations require FedEx Ground to rectify the violations and provide restitution to the drivers. The Attorney General’s investigation into FedEx Ground is ongoing.
