FedEx files suit on Washington State Department of Labor & Industries
FedEx Corp unit FedEx Ground has filed a lawsuit against the Washington State Department of Labor & Industries seeking to gain control of an unedited copy of a report on the company’s use of contractors to deliver packages.
The lawsuit, filed with the Superior Court of Washington for Thurston County on Monday, is the latest chapter in a broad-ranging battle between FedEx Ground and a number of critics of its contractor model, including the Teamsters union.
FedEx Ground uses some 15,000 independent contractors as drivers whom the company describes as entrepreneurs.
FedEx Ground states in the lawsuit that it was contacted by an employee of the labor department in late 2006 or early 2007 who stated that the department had received a report addressing FedEx Ground’s classification of “pick-up and delivery drivers” from an entity named Clark Consulting.
In February 2007 FedEx Ground said it issued a Public Disclosure Act request to the labor department seeking a copy of the report and information about who compiled it. The labor department originally refused to release the report, FedEx Ground said in its filing. FedEx Corp unit FedEx Ground has filed a lawsuit against the Washington State Department of Labor & Industries seeking to gain control of an unedited copy of a report on the company’s use of contractors to deliver packages.
The lawsuit, filed with the Superior Court of Washington for Thurston County on Monday, is the latest chapter in a broad-ranging battle between FedEx Ground and a number of critics of its contractor model, including the Teamsters union.
FedEx Ground uses some 15,000 independent contractors as drivers whom the company describes as entrepreneurs.
FedEx Ground states in the lawsuit that it was contacted by an employee of the labor department in late 2006 or early 2007 who stated that the department had received a report addressing FedEx Ground’s classification of “pick-up and delivery drivers” from an entity named Clark Consulting.
In February 2007 FedEx Ground said it issued a Public Disclosure Act request to the labor department seeking a copy of the report and information about who compiled it. The labor department originally refused to release the report, FedEx Ground said in its filing.
“While the department eventually produced a copy of the report, it unlawfully redacted and continues to withhold key information,” FedEx Ground added in the suit.
“We have been engaged in an ongoing discussion with FedEx for some time.” department spokeswoman Elaine Fischer said. “But we have not yet had time to familiarize ourselves with the contents of the lawsuit.”
There is no shortage of opponents to Memphis-based FedEx’s use of contractors around the United States.
The company is fighting lawsuits — which claim that FedEx exerts so much control over the behavior and time of these drivers, including forcing them to buy their own trucks, that they should be classified as employees — in more than 30 states against this business model. As employees, the lawsuits claim, these drivers should be entitled to benefits.
Drivers at main rival Atlanta-based United Parcel Service Inc are represented by the Teamsters, which has been trying to unionize drivers at FedEx Ground at a number of facilities.
California’s Supreme Court rejected an appeal in November by FedEx against a state court ruling that the company’s drivers are employees.
The Internal Revenue Service has also tentatively concluded that the contractors at FedEx Ground should be reclassified as employees and that the company owes more than USD 319 million in taxes and penalties for 2002. The IRS is auditing similar issues for 2004 through 2006.
