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This case stems from the California Employment Development Dept. audit of FedEx Ground in 2004 where the EDD determined that FedEx Ground drivers were employees. The EDD assessed FedEx Ground owed more than $7.88 million in back payments to California. As of November 2006, California Unemployment Insurance Appeals Board denied FedEx Ground’s petition for reassessment; the EDD audit determination that single route drivers are employees stands and FedEx Ground has 30 days to appeal.