UPS workers may be owed thousands of dollars in back pay thanks to a new lawsuit filed by New York Attorney General Letitia James’ office against the shipping company, alleging that the company essentially stole wages from workers across the state.
James’ office began investigating complaints from unionized Teamsters Local 804 members about UPS payments to seasonal employees in 2023.
Every holiday season, UPS hires thousands of workers as “Driver Helpers” and “Seasonal Support Drivers” statewide from October to January. Teamsters Local 804 filed complaints alleging that these workers often faced wage issues: union members claimed UPS failed to pay them for hours worked, manipulated time records, and violated labor laws.
The AG said her investigation uncovered a pattern of continued underpayment of seasonal delivery workers. “UPS built its holiday business on the backs of workers who were not paid for their time and labor,” James said. “UPS’s seasonal employees work brutal hours in the cold to deliver the holiday packages families across the country count on. Instead of compensating these workers fairly for their labor, UPS has played the Grinch. I am fighting to get these workers their money back and stop UPS from continuing its cruel and unlawful wage theft.”
According to the lawsuit, UPS regularly failed to record all hours worked, resulting in pervasive off-the-clock labor. Workers reported waiting on-site or in the field before clocking in, performing tasks such as loading packages, and traveling between assignments — all without pay. The company allegedly delayed clock-ins until packages were scanned or delivered and automatically deducted meal breaks regardless of whether workers took them. Timesheet edits and pay adjustments based on scheduled start times also kept the early work employees put in unpaid.
UPS is the largest package delivery company worldwide, generating about $90 billion in annual revenue and employing nearly 500,000 people worldwide. The Associated Press reports that the company responded to the lawsuit by stating that it “takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees.
“We offer industry-leading pay and benefits to our more than 26,000 employees in New York, and we remain committed to following all applicable laws.”
James said the exact amount the suit seeks has not yet been determined, but it will likely exceed $45 million. The suit seeks restitution for current and former seasonal workers whose wages were unlawfully withheld and also requests a court order requiring UPS to end off-the-clock work and to revise its timekeeping and payroll practices.
“We at Teamsters Local 804 deeply appreciate the work Attorney General Letitia James and her office have done to hold corporations like UPS accountable,” Local 804 President Vincent Perrone said. “UPS thought they could exploit seasonal workers by not paying them for all time worked. But the Teamsters and the state of New York will always stand up to corporate greed and abuse. Thank you for standing with us and with working people across our great state.”