AG Cuomo Sues FedEx Unit Over Contractor Issue

NEW YORK (AP) — New York’s attorney general is suing Federal Express’ ground package delivery unit over its classification of drivers as independent contractors, rather than employees.

The lawsuit by Attorney General Andrew Cuomo, a Democrat currently running for governor, was filed Friday in New York State Supreme Court.

The complaint argues that FedEx Ground Package System evades labor laws protecting workers by classifying drivers as contractors. The issue has been raised in other courts, and by attorneys general in other states.

A spokesman for Memphis, Tennessee-based FedEx Corp. says numerous federal and state courts have upheld the legality of the company’s contractor system. The spokesman says contractor drivers are well-compensated.

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