Top bar
About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 50
FedEx Corporation
FedEx Corp. provides transportation, e-commerce and business services. With annual revenues of $32 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the FedEx brand.
Federal Contract $: $1592.0m
Total Number of Instances: 29
Total Misconduct dollar amount: $ 204.4m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Contracting Information
- Website
Instances of Misconduct
1. Department of Transportation v. FedEx Corporation (Violations of Hazardous Materials Regulations)
FedEx Express Corporation was fined $9,000 in 2003 for violating the Hazardous Materials Regulations by placing radioactive material that was improperly packaged on an air carrier. The corporation then failed to notify the Department of Transportation within 30 days of a hazardous materials incident.... more»
2. Violations of Hazardous Materials Regulations
The Department of Transportation fined FedEx Ground Package System, Ltd. $8,400 for violating the Hazardous Materials Regulations. The company transported a solid of sodium hydroxide in non-standard packaging.... more»
3. EEOC v. American Freightways/FedEx Freight East (Racial Discrimination)
FedEx Freight East settled a case in which they were charged with allegedly preventing 20 African American employees from being promoted based on their race. The settlement amount was for $500,000 in the form of monetary relief. FedEx is also required to report promotions after the settlement date. FedEx allegedly violated Title VII of the Civil Rights Act of 1964.... more»
4. Shubert v. Federal Express Corporation (Breach of Contract)
From 1996-1997, FedEx imposed a 2% fuel surcharge that was not dictated in their Service Guide. After one failed attempt to state a cause of action, the plaintiff succeeded in finding a cause of action under a charge of breach of contract. FedEx Corporation settled for an undisclosed refund in the form of coupons. The Illinois State Court found that there was sufficient evidence for a cause of action based on the tort of a breach of contract.... more»
5. Settlement of Six Alleged Violations of Export Administration Regulations
FedEx agreed to pay a $370,000 civil penalty to settle six alleged violations of the Export Administration Regulations (EAR). The Department of Commerce’s Bureau of Industry and Security (BIS) alleged that on two occasions in 2006, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the attempted unlicensed export of electronic components from the United States to Mayrow General Trading in Dubai, United Arab Emirates, which is believed to be acquiring the components for use in Improvised Explosive Devices (IEDs) used against Coalition forces in Iraq and Afghanistan. BIS also alleged that in December 2005, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the unlicensed export of flight simulation software to Beijing University of Aeronautics and Astronautics, a/k/a Beihang University, an organization listed on the Department of Commerce’s Entity List. (The Entity List is a list of names of foreign persons or entities determined to have engaged in activities contrary to U.S. national security and/or foreign policy interests.) Lastly, BIS alleged that on three occasions in 2004, FedEx caused, aided and abetted acts prohibited by the regulations when it facilitated the unlicensed export of printer components from the United States to Syria.... more»
6. U.S. ex rel. Garafolo v. FedEx (Package Delivery False Claims)
FedEx paid the federal government $8 million to resolve a False Claims Act lawsuit alleging the company systematically mischarged the government for package deliveries. A FedEx employee whistleblower alleged that, for several years, FedEx falsely used a special “security delay” delivery code to avoid paying refunds for late deliveries. Under the settlement agreement, FedEx did not admit liability, and the government reserved its administrative liability claims, including its suspension and debarment rights.... more»
7. Hazardous Materials Violations at Bradley International Airport
The Federal Aviation Administration (FAA) proposed a civil penalty of $689,800 against FedEx for allegedly violating U.S. Dept. of Transportation hazardous materials regulations. The FAA alleged that, in 89 instances from June 13 to September 4, 2009, FedEx failed to provide pilots with complete and accurate information on the nature, quantity, and weight of hazardous materials loaded on their aircraft. The FAA also alleged that, between June 18 and August 26, 2009, FedEx accepted four shipments of hazardous materials for transportation by air when those materials were not accurately described and certified in the accompanying shipper’s documents. The alleged violations were found during an inspection of the FedEx cargo-handling facility at Bradley International Airport near Hartford, Conn.... more»
8. Racial Discrimination and Harassment
In June 2006, a jury in Alameda County, California awarded $61 million to two FedEx drivers of Lebanese descent who claimed a manager racially harassed them for two years. The jury awarded them $50 million in punitive damages and $11 million in compensatory damages. In September, however, the judge deemed the verdict excessive and reduced the award to $12.4 million. "The harassment was mostly just offensive name-calling," Judge Stephen Dombrink noted in his ruling.... more»
9. ATA Airlines v. FedEx (Breach of Contract)
ATA Airlines Inc. filed a lawsuit against FedEx Corp. alleging breach of contract and breach of fiduciary duty by FedEx. ATA claimed that FedEx, which leads a team of airlines flying military charter flights, ousted ATA from the team in violation of a contract and forced ATA into bankruptcy. FedEx filed a counterclaim against ATA, claiming ATA breached the contract by ceasing operations. In October 2010, a jury returned a $66 million verdict in favor of ATA ($22 million in lost profits for fiscal year 2008, and $44 million in lost profits for fiscal year 2009).... more»
10. Misclassifying Employees (Ohio Administrative Finding)
An investigation by the Ohio Department of Job and Family Services into the employment practices of FedEx resulted in a finding that FedEx owed $654,000 in back taxes and interest to its drivers who the company classified as independent contractors.... more»
11. Foreign Merchandise Import Violations
Federal Express Corporation paid $1.1 million to settle allegations it failed to pay $239,000 in duties on 1,300 shipments of foreign merchandise that passed through its Memphis, Tennessee, hub from January 1987 through January 1989. The merchandise included textiles, jewelry, and electronic, medical, watch and motor vehicle parts. The government also alleged FedEx processed the shipments without receiving the required clearance from the U.S. Customs Service.... more»
12. Export Administration Regulations Violations
FedEx agreed to pay a $40,000 civil penalty imposed by the U.S. Department of Commerce's Bureau of Industry and Security to settle charges pertaining to alleged violations of the Export Administration Regulations (EAR) occurring between 2001 and 2004. The alleged violations included exporting on the behalf of a denied party, transporting with knowledge of a violation of the EAR, aiding and abetting an export to Syria without the required license, and misrepresenting license code on automated export system record.... more»
13. Failure to Use Approved Standards for Cargo Unit Load Devices
The Federal Aviation Administration (FAA) proposed a $1.55 million civil penalty against FedEx Corp. for allegedly failing to revise its maintenance program for airplane loading containers. FAA alleged FedEx failed to ensure that it used approved standards, inspections, and time limitations for 14 cargo Unit Load Devices (ULDs) used on the company’s airplanes beginning in early 2008. The civil penalty addressed 124 flights from March 20 to April 17, 2008. Aircraft ULDs are containers used to load freight. FAA also claims FedEx was notified of the problem in March 2008 but did not fix it until almost a month later.... more»
14. Misclassifying Workers – Massachusetts Attorney General Lawsuit
FedEx Ground agreed to pay Massachusetts $3 million to settle claims alleging the company underpaid payroll taxes, worker’s compensation, and unemployment insurance by misclassifying drivers as independent contractors rather than employees. In addition, 13 drivers who were the subject of a 2007 administrative action (see FedEx instance, “Misclassifying Workers – Massachusetts Citations”) will receive $15,000 each. In settling, FedEx Ground did not admit to any wrongdoing.... more»
15. Misclassifying Employees (Montana Settlement)
The state of Montana reached a $2.3 million settlement with FedEx Ground Package System over its failure to pay unemployment insurance on behalf of its drivers, who, the state determined, had been misclassified as independent contractors. An audit conducted by the Montana Department of Labor and Industry determined that, under Montana law, the drivers should be considered employees of FedEx, which therefore owed unemployment taxes, penalties and interest. Under the settlement, FedEx denied any liability or wrongdoing.... more»
16. Violations of the Americans with Disabilities Act
On March 2, 2006, a federal jury "found in favor of the U.S. Equal Employment Opportunity Commission (EEOC) in its employment discrimination lawsuit against Federal Express Corporation (FedEx) for violating the Americans with Disabilities Act of 1990 (42 USC §12101, et. seq.). EEOC had charged the Memphis, Tenn.-based global shipping giant with failing to provide a reasonable accommodation to Ronald Lockhart, a profoundly deaf employee who worked as a package handler at the company's Baltimore Ramp. The suit charged Federal Express with violating the ADA when it failed to provide reasonable accommodations to Lockhart in the form of American Sign Language interpreters, despite his repeated requests. The jury found FedEx liable for punitive damages in the amount of $100,000 for its knowing failure to accommodate Lockhart as well as compensatory damages of $8,000 for the loss of the accommodation itself." In January 2008, the U.S. Court of Appeals for the Fourth Circuit affirmed the jury’s award.... more»
17. Workplace Discrimination (Retaliation and Constructive Termination)
On December 22, 2004, a jury returned a $1.57 million verdict in favor of a former FedEx employee who sued the company for retaliation and constructive termination. The jury awarded him $201,000 in back pay and $1,370,000 in compensatory damages for emotional pain and distress. The employee, who is white, sought to promote an African American and a Hispanic to supervisory positions but was rebuffed and retaliated against by a corporate management official.... more»
18. Sex Discrimination and Retaliation
A federal jury found in favor of the U.S. Equal Employment Opportunity Commission (EEOC) and Marion Shaub in their lawsuit against FedEx for violations of Title VII of the 1964 Civil Rights Act and intentional infliction of emotional distress. The jury found FedEx liable for a sex-based hostile work environment and retaliation and awarded Shaub $391,400 in back pay and front pay, $350,000 in compensatory damages for emotional pain and distress, and $2.5 million dollars in punitive damages.... more»
19. Failure to Accommodate Employees' Religious Beliefs and Practices
On December 30, 2005, the New York State Attorney General's office announced "the settlement of a case against the Federal Express Corporation (Fed Ex Express) concerning the company’s accommodation of the religious beliefs and practices of several individuals employed as couriers in New York City." The investigation began in 2001 by former FedEx employees who were terminated because of their refusal to cut their hair, which was worn in dreadlocks in accordance with religious beliefs. Under terms of the settlement, FedEx will modify its Personal Appearance Policy.... more»
20. Boswell v. FedEx (Sexual Harassment)
In April 2007, a federal jury in San Francisco awarded $3 million in a sexual harassment and retaliation lawsuit against FedEx. Charlotte Boswell, a former dispatcher at a FedEx facility in Oakland, claimed that her supervisor sexually harassed her and, when she rejected his advances, changed her work hours in retaliation. The jury awarded Boswell $300,000 for lost earnings, $250,000 for emotional pain and suffering and $2,450,000 in punitive damages. The judge later cut the punitive award to $300,000, but in June 2010, the appellate court granted Boswell a new trial to determine punitive damages.... more»
21. Satchell, et al. v. FedEx (Racial Discrimination)
In April 2007, a FedEx subsidiary settled a racial discrimination lawsuit for nearly $55 million, plus an additional $15 million in attorneys' fees. The class action lawsuit alleged that FedEx Express discriminated against its African-American and Hispanic workers by denying them promotions, treating them unfairly in evaluation and disciplinary proceedings, and paying them less than white employees. The settlement affects 20,000 African-American and Hispanic employees who work or have worked in FedEx’s western U.S. region – California, Washington, Utah and Hawaii – since October 1999. The settlement received final approval in August 2007.... more»
22. Violation of FCC Rules
The Federal Communications Commission fined FedEx $4,000 for willful and repeated violation of FCC rules at their Bloomington, California distribution center in June 2006 by operating at an unauthorized radio frequency. FedEx's transmissions interfered with the local police department's dispatching signals.... more»
23. Estrada v. FedEx Ground (Misclassifying Employees)
A class-action lawsuit was filed in Los Angeles County Superior Court in 1999 alleging that single-route FedEx Ground delivery drivers were wrongly classified as independent contractors and were unfairly required to foot the bill for millions in operating expenses, including the cost of uniforms, fuel and maintenance for their delivery trucks, and insurance. In December 2005, the court ruled that FedEx exercised pervasive control over the drivers and their working conditions. The court found that the company had engaged in unfair business practices and awarded the plaintiffs $5.3 million in damages and an additional $12.3 million in attorneys’ fees and costs. In October 2008, a specially-appointed referee awarded California FedEx drivers an additional $9 million in damages. See related FedEx pending instance, “Nationwide Class-Action Lawsuit (Misclassifying Employees).”... more»
24. Illegal Exports to Taiwan
The U.S. Department of Commerce’s Bureau of Industry and Security imposed $15,000 in civil penalties on Federal Express for allegedly facilitating the export of U.S.-origin equipment to a Denied Person and failing to maintain records of the subject transaction. The government alleged that FedEx in 1996 facilitated the export of semiconductor equipment from the United States to Realtek Semiconductor Co., Ltd., of Taipei, Taiwan and failed to maintain a proper record of the transaction.... more»
25. Harassing and Firing Workers Engaging in Union Activity
FedEx Home Delivery and the National Labor Relations Board reached an agreement awarding $253,000 to five present and former drivers in Northboro, Massachusetts who claimed FedEx harassed and/or fired them for engaging in a union organizing effort with the Teamsters. The NLRB brought the complaint in June 2007 after determining the workers were company employees, not independent contractors, and were eligible to unionize.... more»
26. Misclassifying Workers – Massachusetts Citations
The Massachusetts Attorney General’s Office cited FedEx Ground Package System, Inc. for intentionally misclassifying 13 drivers as independent contractors rather than as employees, failing to provide a proper paystub, failing to provide workers’ compensation, not paying overtime, and neglecting to deduct and withhold state income taxes. In addition to assessing monetary penalties, the citations require FedEx Ground to rectify the violations and provide restitution to the drivers. The Attorney General’s investigation into FedEx Ground is ongoing.... more»
27. Price v. Federal Express (Retaliation)
A federal jury in Houston awarded former FedEx employee Derosher Price $2.85 million after finding FedEx retaliated against him for filing a race discrimination lawsuit. Price unsuccessfully sued the company for race discrimination in 1999. After filing his lawsuit, Price — who is African-American — claimed he was denied a promotion and subject to “other forms of general harassment.”... more»
28. Violation of DOT Hazardous Materials Regulations
The Federal Aviation Administration proposed a $165,000 civil penalty against Federal Express Corp. for allegedly violating Department of Transportation hazardous materials regulations. “FAA alleges that the FedEx improperly shipped a fiberboard box containing a chemical oxygen generator on a FedEx cargo flight from Los Angeles to the company's package sorting facility in Memphis where employees discovered the shipment. FedEx offered the shipment for transportation when it was not packaged, labeled, marked, classed, described, documented, or in condition for shipment as required by regulations. FedEx also failed to ensure employees were trained to properly package and handle hazardous materials, and did not make available at all times the required emergency response information.”... more»
29. Hughes v. FedEx (FedEx Truck Accident)
A Texas federal jury ordered FedEx Ground Package System, Inc. to pay $2 million to James Hughes, who was injured in an accident with a FedEx delivery truck in Ore City, Texas in December 2006. The jury found that the accident was caused by the negligence of the FedEx driver.... more»
Quick Search
= link