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The attorneys general for eight states notified FedEx of their concerns the company may be inappropriately treating drivers as independent contractors rather than employees.
Improper employee classification could allow the company to avoid taxes and strip workers of their right to work comp benefits, unemployment insurance, and mandated wage protections, the attorneys general from Iowa, Kentucky, Missouri, Montana, New Jersey, Ohio, Rhode Island, and Vermont, said in a joint FedEx letter dated June 25.
FedEx has told publications it will work with the attorneys general, but that the right of contractors for FedEx to independently own and operate their business has been validated in court.