FedEx Corp. has disclosed that the Internal Revenue Service has tentatively concluded that the company misclassified FedEx Ground delivery drivers as independent contractors in 2002 and that the company could owe $319 million in taxes and penalties.
A federal judge has ordered Southern California Maid Services and Carpet Cleaning to pay $3,467,789 in back wages and $1,058,973 in damages to 385 current and former low-wage workers.
The Department of Labor says it has found a number of cases in which employers are misclassifying Hurricane Katrina clean-up workers as independent contractors.
The U.S. Department of Labor has filed a lawsuit against Glendale, California-based, Janitorial Carpet's Maintenance, saying the company misclassified workers as independent contractors.
Independent contractors accounted for 7.4 percent of total employment in February
2005, up from 6.4 percent in February 2001, according to the Bureau of Labor
Statistics of the U.S. Department of Labor.
Delivery drivers for FedEx in Memphis have filed a federal lawsuit accusing
the company of improperly classifying them as independent contractors, the Associated
Press reports.
The U.S. Equal Employment Opportunity Commission sued the Allstate Insurance Company on Thursday, after 15 months of trying to settle accusations that the insurer discriminated against its agents.
