Three US states announced yesterday that they plan to sue FedEx Corporation for labor law violations. The three states, New York, New Jersey, and Montana, contend that FedEx violated labor laws by illegally categorizing drivers as independent contractors and not as employees. The classification saves money for the company but has deprived as many as 1,000 workers of proper compensation coverage and state protection. Additionally, the company continued to require 'employees' to purchase uniforms, pay to lease trucks, etc. FedEx, who has faced similar charges from the Teamsters union in the past, says that 'employees' have a right to run their own businesses if they want.
See "Three US states may sue FedEx for labor violations", Jonathan Stemple, Reuters, October 20, 2009