FedEx To Pay Montana $2.3M Over Driver Dispute

Law360, New York (October 20, 2010, 4:58 PM EDT) -- FedEx Ground Package System Inc. has agreed to pay the state of Montana $2.3 million to settle claims that the company misclassified its drivers as independent contractors.

Montana Attorney General Steve Bullock announced the settlement Wednesday, which followed a year-long investigation by the state's departments of labor and justice.

Bullock's office had alleged that by wrongly classifying its drivers as independent contractors, FedEx paid less than it should have for payroll taxes, workers' compensation and unemployment assistance.

"This is a basic issue of fairness. Every worker...
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