FedEx
Flagged · AvoidAvoids federal taxes, fights unionization, and is shifting delivery work to contractors to strip drivers of employee protections.
Last updated October 5, 2026
Reasons to avoid
Issues span:LaborTax
Unpaid security screenings for ~100,000 workers
FedEx agreed in February 2026 to pay $8.5 million to settle a class action covering approximately 97,795 hourly workers at 17 New Jersey warehouses who were not compensated for time spent on mandatory pre- and post-shift security screenings. Workers were required to be on FedEx property, passing through security checks and walking to and from time clocks, before they were ever allowed to clock in.Shifted drivers off payroll, hindering unions
FedEx announced a major 2023 restructuring that would shift its entire delivery network toward contracted workers with no drivers on the company's payroll, explicitly choosing a model that makes worker unionization harder. The plan is designed to cut $6 billion in costs by 2027 by stripping out the employment protections, benefits, and labor rights that come with direct employment.Spent $837,000 fighting driver unions
Between 2014 and 2018, FedEx spent $837,000 on union-avoidance consultants and required workers to attend mandatory anti-union meetings as the Teamsters sought to organize its drivers. Workers were subjected to sessions where managers and outside consultants delivered anti-union messages and, in some cases, misleading information about labor organizing.Zero federal tax on $1.2 billion
FedEx paid zero federal income tax on $1.2 billion in U.S. pretax income in 2020 and received a $230 million tax rebate, according to an analysis by the Institute on Taxation and Economic Policy. The company was among 55 major corporations that avoided federal taxes that year by exploiting breaks expanded under the 2017 Tax Cuts and Jobs Act.Spent $11 million on federal lobbying
FedEx spent more than $11 million on federal lobbying in 2023, with priorities including labor law, trade, and taxation, according to OpenSecrets. The company's lobbying team includes around 50 former government officials, including ex-chiefs of staff to top congressional leaders.Ignored defective equipment before worker's death
A FedEx worker at the company's Memphis hub died in February 2022 after supervisors failed to address her reports of defective equipment, and Tennessee OSHA fined FedEx only $26,000 despite finding six serious safety violations. FedEx's Memphis facility has recorded multiple worker deaths since 2017, earning the company a spot on the National Council for Occupational Safety and Health's 2023 "Dirty Dozen" list of the most dangerous U.S. employers.
Ethical alternatives
Common questions
- Is FedEx ethical?
- FedEx is restructuring its entire delivery network to use contracted workers with no drivers on payroll, a model designed to cut $6 billion in costs by 2027 by eliminating employment protections and benefits. The company paid zero federal income tax on $1.2 billion in pretax income in 2020 and received a $230 million tax rebate while spending over $11 million on federal lobbying in 2023.
- Why should I avoid FedEx?
- FedEx spent $837,000 on union-avoidance consultants between 2014 and 2018 and required workers to attend mandatory anti-union meetings. A worker at the Memphis hub died in 2022 after supervisors ignored reports of defective equipment, and the facility has recorded multiple worker deaths since 2017, earning FedEx a spot on the National Council for Occupational Safety and Health's "Dirty Dozen" list of the most dangerous U.S. employers.
- What are the best ethical alternatives to FedEx?
- USPS employs unionized workers, serves all communities, and has a lower carbon footprint than private carriers. Local courier services are also worth checking for community-based options.
Know of a documented reason we're missing?