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 »

United Parcel Service, Inc.

United Parcel Service (UPS) is a package and document delivery company. UPS also provides supply chain services. UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world. UPS's forwarding and logistics business provides services in more than 175 countries and territories worldwide, and includes worldwide supply chain design, execution and management, freight forwarding and distribution, customs brokerage, mail and consulting services.

Federal Contract $: $ 700.9m

Total Number of Instances: 13

Total Misconduct dollar amount: $ 47.4m

Instances of Misconduct

1. Carter v. UPS (Racial Discrimination)

United Parcel Service agreed to pay $8.2 million to about 12,000 employees to settle allegations that it discriminated against African-American employees in pay, promotion, and job assignments. (The overall amount of the settlement was reportedly $12.1 million.) The lawsuit alleged that UPS routinely passed over African-American workers for promotion in favor of less-experienced white workers, failed to pay African-American supervisors the same wages as whites, and retaliated against those who complained of unfair treatment.... more»

2. Unsafe Delivery Trucks (New York Investigation)

United Parcel Service paid $1.3 million to settle allegations that it knowingly used package delivery trucks in “serious disrepair.” An investigation by the New York Attorney General found that UPS allowed dozens of trucks with cracked or rotted frames to remain in service. The state alleged that during the time these trucks were kept in service, UPS mechanics conducted state and federal inspections falsely certifying the vehicles were safe.... more»

3. Bates v. UPS (Disability Discrimination)

Current and former deaf employees of United Parcel Service filed a class-action lawsuit alleging the company excluded them from numerous job categories and otherwise did not fairly accommodate them in the workplace. In 2003, UPS settled claims related to accommodations and promotions by agreeing to pay $5.8 million in damages. The rest of the claims were settled in 2009 with UPS agreeing to implement a new employee hearing standard and pay $5.25 million in attorneys’ fees and costs.... more»

4. EEOC v. UPS (Failing to Accommodate an Employee with Diabetes)

The U.S. Equal Employment Opportunity Commission (EEOC) alleged that UPS violated the Americans with Disabilities Act by failing to reasonably accommodate a driver with Type II diabetes. UPS settled the case by agreeing to pay $149,999 ($74,999.50 in back pay and $74,999.50 in non-wage damages) to the driver.... more»

5. Fischer v. UPS (Retaliation)

Kevin Fischer sued his former employer, UPS, accusing it of firing him in retaliation for filing a race discrimination lawsuit against the company. A jury returned a verdict in Fischer’s favor, awarding him $2.1 million in back pay, compensatory damages, and punitive damages. The trial court first reduced the $1.3 million punitive damages award to $300,000 to comply with the cap under Title VII of the Civil Rights Act, then, after hearing post-trial motions, vacated it. On appeal, the United States Court of Appeals for the Sixth Circuit reversed and remanded with instructions to reinstate the jury’s punitive damages award, subject to the $300,000 statutory cap.... more»

6. Hoskins v. UPS (Racial/Sexual Preference Discrimination)

Kathy Hoskins sued her former employer, UPS, for what she described as severe, widespread and ongoing workplace harassment that led to her wrongful firing. A California state court jury found that Hoskins was subjected to a hostile work environment and that she was unjustly terminated and awarded her nearly $64,000 in damages.... more»

7. Meza v. UPS (Unpaid Overtime)

A class-action lawsuit alleged UPS wrongly withheld approximately $100 million in overtime wages from account managers, who were classified as exempt from overtime pay. The lawsuit alleged account managers were required to work more than 40 hours a week without overtime pay, and UPS failed to keep accurate records of their work, in violation of the federal Fair Labor Standards Act and California’s wage and hour laws. According to court records, the lawsuit was settled “on an individual basis” in November 2010.... more»

8. EEOC v. UPS (Religious Discrimination – Harrisburg, PA)

UPS Ground Freight (d/b/a UPS Freight) agreed to pay $46,000 to settle a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) on behalf of a Rastafarian employee who was told by management to shave his beard and cut his dreadlocks but refused. The EEOC alleged UPS Freight fired Nieland Bynoe instead of attempting to reasonably accommodate his religious beliefs, in violation of Title VII of the Civil Rights Act of 1964. In addition to the monetary relief to Bynoe, UPS Freight also agreed to a two-year consent decree that includes injunctive relief prohibiting UPS Freight from engaging in unlawful religious discrimination or retaliation, anti-discrimination training; and posting a notice about the settlement.... more»

9. Runner v. UPS (Unfair Shipping Rate Policy)

Plaintiffs in a class-action lawsuit alleged that, on occasion, UPS incorrectly charged higher rates applicable to residential deliveries when making deliveries to commercial locations. UPS settled the lawsuit in 2008 for $7.8 million and did not admit any liability or wrongdoing.... more»

10. Sobocinski v. UPS (Sexual Harassment)

In March 2005, UPS employee Thomas Sobocinski filed a complaint with the Massachusetts Commission Against Discrimination (MCAD) alleging a sexually offensive and hostile workplace at UPS’s Shewsbury, Massachusetts warehouse. The MCAD substantiated Sobocinski’s allegations and awarded him $50,000 in damages and $24 in lost wages.... more»

11. Anderson v. UPS (Disability Discrimination)

In February 2008, UPS employee William Anderson, Jr. filed a complaint with the Massachusetts Commission Against Discrimination (MCAD) alleging he was subjected to discrimination by UPS, including constructive discharge, on the basis of his handicap, bipolar depression and anxiety disorder. He claimed UPS failed to reasonably accommodate his request to work in a daytime position with less stress and fewer hours. The MCAD substantiated Anderson’s allegations and awarded him more than $740,000 in lost wages and $125,000 in damages.... more»

12. EEOC v. UPS (Religious Discrimination – Bartlett, TN)

In June 2009, UPS settled a religious discrimination lawsuit in which the U.S. Equal Employment Opportunity Commission (EEOC) alleged the company failed to accommodate the religious beliefs of one of its employees. UPS made the employee work past sundown on his Sabbath, which violated his tenets as a member of the United Church of God. UPS denied the EEOC’s allegations but agreed to pay $23,500 in damages to the employee.... more»

13. LaBrie v. UPS Supply Chain Solutions (Misclassifying Workers)

Current and former drivers who worked for UPS Supply Chain Solutions or its predecessor companies (UPS Logistics, SonicAir, Air Couriers) filed a class-action lawsuit claiming they were wrongly classified as independent contractors and were owed minimum wages and overtime pay under the Fair Labor Standards Act. The lawsuit settled in December 2009 with UPS agreeing to pay $12.8 million.... more»