UPS sued for allegedly underpaying season workers

The delivery company allegedly failed to pay tens of thousands of seasonal workers proper wages, totaling tens of millions of dollars.
UPS van, location unknown, May 6, 2016. More: Original public domain image from Flickr

New York Attorney General Letitia James filed a lawsuit against UPS, alleging the company deprived tens of thousands of seasonal workers of about $45 million in wages over the past six years.

The suit accuses UPS of making driver helpers and seasonal support drivers work off the clock, clock in late, and deducting pay for lunch breaks employees never took.

The big picture: The alleged unfair pay practices affected workers who help deliver packages during the busy holiday seasons, typically hired from October to January each year.

  • The legal action, filed in Manhattan state court, seeks back pay for the impacted workers, additional penalties, and a court order for UPS to overhaul its timekeeping and payroll procedures.
  • According to James, many seasonal employees struggle financially while helping UPS deliver an average of 22.4 million packages per day and contributing to the company’s $91.1 billion in annual revenue.

Driving the news: The investigation by the attorney general began in 2023 after the Teamsters Local 804 union raised concerns about how UPS was treating its holiday-season temporary workforce.

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