FedEx To Pay Mass. $3M Over Driver Classification

Law360, New York (July 15, 2010, 6:21 PM EDT) -- A FedEx Corp. subsidiary has agreed to pay the state of Massachusetts $3 million to settle claims that the company misclassified its drivers as independent contractors.

Massachusetts Attorney General Martha Coakley on Thursday announced the settlement, which will be paid into the state's general fund.

Her office had alleged that FedEx's misclassification of its drivers led the company to improperly pay the state less than it should have for payroll taxes, workers' compensation and unemployment assistance.

“We have made enforcement against employer misclassification a priority because...
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