New York Attorney General Letitia James filed a lawsuit Monday in Manhattan state court, accusing UPS of stealing tens of millions of dollars in pay from seasonal workers who help deliver packages during the busy holiday season. James says the company forced some workers to clock in well after their shifts began and deducted pay for lunch breaks that were never taken. The lawsuit alleges that UPS has repeatedly and persistently failed to properly compensate driver helpers and seasonal support drivers.
The Allegations
The complaint, filed in state court, details how UPS allegedly deprived tens of thousands of seasonal workers of wages totaling about $45 million over the last six years. James estimates that the company’s practices—such as requiring workers to start off‑the‑clock and then paying them for periods when they were not actually working—have resulted in significant wage theft. The lawsuit also claims that UPS has failed to maintain accurate timekeeping records and has not complied with New York’s labor laws.
Legal Relief Sought
In addition to back pay and penalties, the lawsuit requests a court order that forces UPS to end off‑the‑clock work and overhaul its timekeeping and payroll systems. James argues that these changes are necessary to protect seasonal workers who are hired on a temporary basis from October to January. The legal action seeks to ensure that future workers are paid correctly and that the company follows all applicable wage and hour regulations.
UPS’s Response
Georgia‑based UPS issued a statement acknowledging the lawsuit and stating that it “takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees.” The company added that it offers “industry‑leading pay and benefits to our more than 26,000 employees in New York, and we remain committed to following all applicable laws.” UPS’s statement underscores its commitment to compliance while denying the claims of intentional wage theft.
Union Involvement
The investigation began in 2023 after Teamsters Local 804, an employee union, raised concerns about UPS’s treatment of seasonal workers. Josh Pomeranz, the union’s director of operations, said that while there is no evidence that UPS’s top management was aware of or condoned the alleged wage theft, “these are just certain practices that you have to actively ignore, not to see it happening.” Pomeranz’s remarks highlight the union’s frustration with the company’s payroll practices.
Company Scale and Impact
UPS is known for its brown trucks and uniforms. According to its website, the company delivered an average of 22.4 million packages a day and generated $91.1 billion in revenue last year. These figures illustrate the massive scale of UPS’s operations and the potential impact of wage practices on thousands of seasonal workers.
Workers’ Perspective
James emphasized that “We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays.” She added that “these individuals are struggling each and every day to make ends meet.” The quote underscores the human cost of the alleged wage theft and the broader social implications for workers who rely on seasonal jobs during the holiday season.
Current Context
Mail carriers are working overtime to ensure packages are delivered on time, but there are a few deadlines to keep in mind this holiday season. The lawsuit adds a new layer of scrutiny to UPS’s labor practices at a time when the company’s delivery volume is at its peak.
Key Takeaways
- UPS is accused of stealing tens of millions of dollars in wages from seasonal workers, with an estimated $45 million lost over six years.
- The lawsuit seeks back pay, penalties, and a court order to eliminate off‑the‑clock work and overhaul payroll practices.
- UPS denies the allegations, asserting it offers industry‑leading pay and benefits and complies with all applicable laws.
- Teamsters Local 804 raised concerns in 2023, and the union’s director highlighted the need to address payroll practices.
- UPS delivered an average of 22.4 million packages a day and earned $91.1 billion last year, underscoring the scale of the company’s operations.
The lawsuit marks a significant legal challenge for UPS and highlights the ongoing debate over how large logistics companies compensate seasonal workers during the holiday rush.
Hi, I’m Cameron R. Hayes, the journalist, editor, and creator behind NewsOfFortWorth.com. I built this platform with a simple purpose — to deliver fast, clear, and trustworthy news that keeps Fort Worth informed and connected.
I’ve spent more than five years working in digital media, reporting on breaking news, local government, public safety, business growth, community events, and the real stories that shape life in Fort Worth. My goal has always been the same: to provide accurate, community-focused reporting that people can rely on every day.
