In a major legal action, the state of New York has accused global shipping behemoth UPS of systematically stealing millions of dollars in wages from its temporary holiday workforce. The lawsuit, filed by Attorney General Letitia James, paints a picture of widespread labor violations affecting tens of thousands of seasonal employees.
Core Allegations: Off-the-Clock Work and Phantom Deductions
New York Attorney General Letitia James announced the lawsuit on Monday, alleging that UPS deprived seasonal workers of approximately $45 million in wages over the last six years. The legal complaint, filed in a Manhattan state court, claims the company engaged in a persistent pattern of failing to properly pay two categories of seasonal staff: driver helpers and seasonal support drivers who use their personal vehicles.
The core accusations are severe. The lawsuit states that UPS forced these workers to clock in well after their shifts had actually begun, meaning they performed work without pay. Furthermore, the company is accused of automatically deducting pay for meal breaks that the employees never actually took. "We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays," James remarked, highlighting the plight of these temporary employees who struggle to make ends meet.
Company Denial and Union Concerns
In response to the allegations, Georgia-based UPS issued a firm statement. The company said it takes all accusations seriously but denies the "unfunded allegation" of intentionally underpaying its employees. UPS emphasized its commitment to following all applicable laws and pointed to the "industry-leading pay and benefits" offered to its more than 26,000 employees in New York.
The investigation was reportedly triggered in 2023 after the employee union, Teamsters Local 804, raised red flags about the treatment of seasonal workers. These workers are typically hired on a temporary basis from October through January to handle the massive holiday delivery surge. Josh Pomeranz, the union's operations director, suggested that while top management may not have been directly involved, the wage theft practices were so prevalent that they would have to be "actively ignored" not to be seen.
Legal Demands and Scale of the Operation
The lawsuit seeks significant restitution. Attorney General James is demanding back pay for the affected workers, financial penalties, and a court order compelling UPS to cease all off-the-clock work and reform its timekeeping and payroll systems. The scale of the alleged theft is magnified by the sheer size of UPS's operations. According to its website, the company, famous for its brown trucks and uniforms, delivered an average of 22.4 million packages daily and generated a staggering $91.1 billion in revenue last year alone.
This case puts a spotlight on the often-precarious conditions faced by seasonal workers in the logistics industry, especially during peak demand periods. The outcome could set a precedent for how temporary labor is compensated in one of the world's largest delivery networks.
