Federal Contractor Misconduct Database (FCMD)
Misclassifying Workers – Massachusetts Attorney General Lawsuit
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.
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- Enforcement Agency
- Contracting Party
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- Date of Settlement Announcement