New York Attorney General Letitia James has filed a lawsuit against UPS over its handling of seasonal worker wages, accusing the company of violating labor laws. According to the wage theft lawsuit, UPS has been accused of relying on unlawful timekeeping practices to underpay its seasonal workers, choosing to invest in strategies that disguise its workers’ time spent on the job. The allegations suggest that UPS has stolen millions from seasonal workers, making them divest efforts into unpaid labor during the holiday rush.
The New York AG has filed a lawsuit against USP for underpaying seasonal workers’ wages and launching a “systematic campaign” of poor labor practices. (Image: Freepik)
“UPS Has Played the Grinch,” NY Files a Lawsuit Against UPS Over Seasonal Workers’ Wages
UPS has been accused of underpaying the workers who help the delivery company keep up its end of the bargain with customers, using unfair labor practices that violate both the New York Labor Law and the federal Fair Labor Standards Act across its facilities. The investigation into the company began in 2023 after members of the Teamsters Local 804 union raised concerns regarding “widespread nonpayment issues” affecting the seasonal workers.
Reportedly, UPS “repeatedly and persistently” failed to fairly compensate its driver helpers and seasonal support drivers for the time spent on the job, underpaying them for services rendered. Among the tactics identified in the UPS wage theft lawsuit, the company delayed workers from clocking in at the right times for their shifts.
Worker clock-ins were delayed until a package was scanned or delivered, even if the worker technically began their working hours earlier. The company also automatically deducted 30-minute meal breaks, regardless of whether the workers used them.
What Is the Goal of the UPS Seasonal Worker Lawsuit?
The lawsuit against UPS is aimed at securing back pay for affected workers and a hefty penalty to chastise the large-scale employer. The lawsuit also hopes to introduce corrective measures to the company’s practices and put a stop to such off-the-clock work. This requires the company to better record its workers’ shifts and pay them more accurately for their time on the job.
UPS brought in $9 million last year, and the company employs over 500,000 workers worldwide. The scale of its operations is undeniably vast, reportedly delivering 22.4 million packages a day. The company recently decided to shrink its operations after cutting ties with a major client, but the delivery business is by no means small. The state of its operations affects a vast number of workers, and the New York lawsuit alleging UPS’ theft of wages from seasonal workers aims to correct a major flaw in its operations.
UPS Denies Allegations of Any Wrongdoing
While the dispute over UPS seasonal workers’ wages rages on, the company has denied the allegations of intentionally underpaying workers. UPS stated that it “takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees.”
In a statement to CBS News, the company explained, “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.” The company has not outwardly provided any evidence to disprove the allegations thus far.
What the New York Attorney General Has to Say About UPS
The New York AG has stood firm on the allegations. “UPS built its holiday business on the backs of workers who were not paid for their time and labor,” AG Letitia James said in a public statement detailing the lawsuit. “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.”
The strategies laid out in the UPS seasonal workers wage dispute don’t hint at any large-scale mechanisms or clear strategies to circumvent the regulations, but instead showcase how seemingly minor details in operations can have severe repercussions for employees if organizations are not careful. The New York AG stated that the company deprived tens of thousands of seasonal workers of their fair share of wages, amounting to around $45 million over the last six years.
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