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Attorney General's News Release

June 25, 2009

Attorney General Koster tells FedEx Ground to classify workers properly

--Koster, other AGs concerned that FedEx may be circumventing worker protections, dodging state taxes--

Jefferson City, MO. - Attorney General Chris Koster is joining seven other Attorneys General from across the country to spearhead an effort to bring FedEx Ground in line with state employee classification laws.

In a letter sent Thursday to FedEx Ground, the group of Attorneys General expressed concern that FedEx may be treating its drivers as independent contractors rather than employees. An improper classification could allow the company to avoid paying payroll taxes, and would leave workers without the basic protections they are guaranteed - such as workers' compensation insurance, unemployment insurance, wage and hour protections, civil rights protections, and a minimum wage.

The letter was signed by Koster and the Attorneys General of Iowa, Kentucky, Montana, New Jersey, Ohio, Rhode Island and Vermont.

"Misclassifying workers is unfair to those workers and unfair to companies who properly support their workers and pay their fair taxes," Koster said. "We want to work with FedEx Ground to make sure their employees in Missouri are protected under state laws and receive the benefits they deserve."

Koster said there are approximately 400 FedEx Ground workers in Missouri who are impacted by the company's misclassification.


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