Lat Thursday, the Attorney General for Massachusetts announced that FedEx had agreed to pay $3 million dollars for misclassifying drivers as independent contractors. Worker misclassification has been problematic for the delivery company whose business model appears to classify a majority of their drivers, and what most people consider employees, independent contractors.

Fedex’s latest news maker is somewhat surprising since they’ve backed their business model all along. Now all of a sudden they decide to shell out $3 million! Who is this delivery company and what have you done to the old FedEx? Now, before we take notice of  FedEx’s “noble” actions, I can’t help but think  that maybe this was a ploy to soften up Massachusetts and the 13 drivers who have filed suit against them. If this was FedEx’s plan all along, they greatly undervalued their payout. The 13 drivers involved in the suit have indicated that they no intention of easing up but instead  will continue with their lawsuit.

Though have not heard the last of this Massachusetts – FedEx tangle. I can’t but help wonder if the $3million payment will hurt FedEx’s case as the lawsuit continues.  As usual, a FedEx spokesperson continued to deny the company’s liability and  stated that FedEx was merely trying to settle the dispute. Was it a guilty conscience? Hardly. The payout is a drop in the hat for a company that has a cost advantage of up to 30% on it’s  major competitor, UPS.  Whatever the reasoning for the payout, the bigger question is will this have any bearing on the class action suit taking place in Indiana. Stay tuned.