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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

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).”

Misconduct Type
Labor
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Final Judgment
1/27/2006
Contractors Involved Penalty
Total
FedEx Corporation $26,600,000

See also:

Federal Contractor Misconduct Database