Teamsters Support CT Law Cracking Down on Illegal Employee Misclassification

The Teamsters strongly support legislation before the Connecticut General Assembly that would create a task force to review whether employers are misclassifying workers as independent contractors.

California, New York and Michigan have already created task forces to review serial misclassification by employers. The Connecticut bill would review and coordinate the investigation and civil and criminal prosecution of state and federal laws regarding misclassification. The Connecticut General Assembly Committee on Labor and Public Employees is considering this legislation.

Connecticut authorities are investigating FedEx Corporation subsidiary FedEx Home Delivery for misclassification violations. Drivers from Windsor, Conn., FedEx Home Delivery voted in 2007 to join Teamsters Local Union 671. Numerous drivers have filed claims with the state for violations of wage and hour and unemployment insurance laws.

The Connecticut Department of Labor and Unemployment Insurance Board ruled some of the Windsor drivers were employees and not independent contractors. Connecticut Attorney General Richard Blumenthal's office is in proceedings against FedEx to defend a state determination of employee status.

"The Teamsters fully support the establishment of a misclassification task force in Connecticut," said General President Jim Hoffa. "A multi-agency task force will close the loopholes, seal the cracks and see that all workers get the state protections and benefits they earn as employees."

"FedEx drivers in Connecticut are clawing back their rights—by joining the Teamsters and demanding the state enforce its laws," said Teamsters Local Union 671 Secretary-Treasurer Dave Lucas.

FedExs misclassifications are being challenged by state governments. A preliminary IRS audit found that FedEx owed $319 million in back federal taxes plus fines and penalties.