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UPS built its holiday business on the backs of workers who were not paid for their time and labor

Letitia James, NY Attorney General

Accused of Underpaying Thousands

The New York Attorney General’s office has filed a sweeping lawsuit against United Parcel Service, Inc. (UPS), accusing the global delivery giant of systematically shortchanging and underpaying thousands of seasonal holiday workers. The complaint alleges that the company’s labor practices during peak holiday seasons involved widespread unpaid overtime, unrecorded work, and manipulated timekeeping that deprived workers of millions of dollars in wages.

According to the lawsuit, which was filed in Manhattan Supreme Court, UPS repeatedly failed to compensate workers for hours they actually worked. These alleged violations occurred mainly between October and January when the company relies heavily on temporary workers to handle skyrocketing package volume.

Seasonal employees, including Driver Helpers and Seasonal Support Drivers, are said to have frequently waited for assignments, traveled between job sites, or completed mandatory tasks without being paid.

“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” said New York Attorney General Letitia James, accusing the company of “wage theft” and comparing the conduct to that of the Grinch stealing winter cheer.

Alleged Legal Violations

According to the complaint, UPS’s practices may violate both New York Labor Law and the federal Fair Labor Standards Act, which require employers to pay workers for all hours worked, including overtime beyond 40 hours per week. The lawsuit alleges that employees were not compensated for time spent waiting for assignments, traveling between job sites, or completing required tasks before and after recorded shifts.

Investigators also claim that timekeeping systems failed to accurately capture actual work hours, resulting in systematic underpayment rather than isolated payroll errors. The state argues that such practices, if proven, constitute wage theft under existing labor statutes.

Key Allegations in the Lawsuit

The complaint lays out several practices the AG’s office claims violate New York and federal labor laws:

• Off-the-clock work was widespread, with employees not clocking in until after work began. New York State Attorney General
• Timekeeping manipulation included delayed start times, automatic meal break deductions—even when breaks weren’t taken—and edited time records to minimize payable hours. New York State Attorney General
• Unpaid travel and tasks such as returning undelivered packages, watching mandatory training videos, and moving between assignments were not compensated. PYMNTS.com
• Overtime denial was alleged even when workers logged more than 40 hours in a week during peak periods. New York State Attorney General

Investigators say the pattern of omissions and wage reductions was not isolated but repeated across more than 50 UPS facilities in New York state.

UPS Responds

UPS has responded by denying the allegations, stating it offers industry-leading pay and benefits and remains committed to compliance with applicable labor laws. The company says it is aware of the lawsuit and is reviewing the claims as part of the ongoing legal process.

What’s at Stake ?

The lawsuit seeks:

• Restitution for current and former seasonal workers allegedly denied wages. [Fingerlakes1.com]
• Financial penalties and damages for violations of wage laws. [Hudson Valley Press]
• Reforms to corporate timekeeping and payroll practices to prevent future underpayment. [New York State Attorney General]

If the state prevails, this case could reshape how major logistics firms treat seasonal labor, especially during the high-demand holiday rush when millions of packages zoom across the country. [Gothamist]

Union Reaction and Worker Advocacy

Lawsuit is good as temporary workers are less likely to be silenced

Labor organizations welcomed the lawsuit, calling it a significant step toward holding large employers accountable for wage practices during peak seasons. Representatives from worker advocacy groups said the case highlights long-standing concerns about unpaid waiting time and uncompensated preparatory work in the logistics sector.

Contractual workers are often afraid of speaking up, in fear of losing their jobs

Union leaders argue that temporary and seasonal workers are less likely to challenge pay discrepancies due to short employment periods and fear of losing future work, making enforcement actions by the state particularly important.

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