Ohio Finds FedEx G/HD Drivers are Employees; Company Appeals - June 24, 2008

According to Bloomberg:

Kenneth Kies, a Washington tax lawyer and lobbyist whose firm has been paid $540,000 by UPS since 2002, sent Ohio officials a 562-page report in December 2006 alleging that FedEx misclassified truck drivers as contractors. A copy of the report, including a cover letter in which Kies asked for confidentiality, was released to Bloomberg News by Ohio officials. 

``We took it and opened our own investigation,'' said Judi Cicatiello, Ohio's unemployment compensation deputy director. She said it was ``very'' unusual to get such detailed allegations. Her agency determined in May 2007 that the drivers were employees and FedEx owed $654,000 in taxes and interest. The company is appealing. 

Must include Ohio in the list of "approximately 25 state tax and other administrative proceedings that claim that the company's owner-operators should be treated as employees, rather than independent contractors" that FedEx admitted to in its March 2008 quarterly SEC filing.