NEW YORK – In a bold legal move, New York Attorney General Letitia James has filed a lawsuit against UPS, accusing the global shipping titan of systematically shortchanging its seasonal workforce. The lawsuit, unveiled on Monday, claims that UPS deprived tens of millions of dollars in wages from workers who play a crucial role during the bustling holiday season.
The legal action, lodged in Manhattan’s state court, centers around allegations that UPS consistently failed to adequately compensate its driver helpers and seasonal support drivers. These workers, often using their own vehicles, are essential in ensuring timely deliveries. According to the lawsuit, over the past six years, UPS has allegedly withheld approximately $45 million in wages from thousands of seasonal employees.
Attorney General James is seeking not only back pay and penalties but also a mandate to overhaul UPS’s timekeeping and payroll methods. The lawsuit aims to halt the practice of employees starting their shifts without pay and having wages unfairly deducted for lunch breaks they never took. This move highlights a significant demand for accountability from a company that delivered an average of 22.4 million packages daily last year and reported $91.1 billion in revenue, as noted on UPS’s official website.
At a news conference, James highlighted the often-overlooked struggles of these workers, emphasizing their critical yet underappreciated role during the holiday season. “We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays,” she remarked. “And these individuals are struggling each and every day to make ends meet.”
In response, UPS, headquartered in Georgia, issued a statement acknowledging the lawsuit and firmly denying the allegations of wage theft. The company emphasized its commitment to providing competitive pay and benefits to its 26,000 employees in New York, asserting that it adheres to all legal standards.
The unfolding lawsuit against UPS underscores a growing scrutiny of labor practices within major corporations, especially those with significant seasonal hiring. As the legal proceedings commence, the spotlight remains on how UPS will address these serious accusations and the potential implications for its labor policies moving forward.
James, a Democrat, said she started investigating UPS in 2023 after an employee union, Teamsters Local 804, raised concerns about the company’s treatment of seasonal workers. Those workers are employed on a temporary basis from October to January.
Josh Pomeranz, the union’s director of operations, said that while there isn’t evidence that the company’s top management was involved in, aware of or condoning alleged wage theft, “these are just certain practices that you have to actively ignore, not to see it happening.”
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