NY AG Files $45 Million Wage Theft Lawsuit Against UPS, Accusing Company of Systematic Underpayment of Seasonal Workers

In a courtroom showdown that could reshape how a logistics giant treats its most vulnerable employees, New York Attorney General Letitia James filed a lawsuit Monday accusing UPS of stealing tens of millions of dollars from seasonal workers.

The Allegations

James claims that UPS has repeatedly and persistently failed to properly compensate driver helpers and seasonal support drivers. The lawsuit alleges that workers were forced to clock in well after their shifts began and that pay was deducted for lunch breaks they never took. According to the complaint, these practices have deprived tens of thousands of seasonal workers of wages totaling about $45 million over the last six years.

Financial Scale of the Operations

UPS, the company known for its brown trucks and uniforms, delivered an average of 22.4 million packages a day and brought in $91.1 billion in revenue last year, the lawsuit notes. The figure underscores the magnitude of the alleged wage theft, as it occurs within a company that handles a staggering volume of deliveries during the holiday season.

Legal Remedies Sought

The lawsuit seeks back pay and penalties for the affected workers. It also requests a court order requiring UPS to:

• End off‑the‑clock work practices
• Revise its time‑keeping system
• Overhaul payroll procedures

If granted, these orders would force UPS to adopt new practices that align with state labor laws.

UPS’s Response

In a statement, Georgia‑based UPS said it was aware of the lawsuit, “takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees.” The company added that it offers industry‑leading pay and benefits to its more than 26,000 employees in New York and remains committed to following all applicable laws.

Background of the Investigation

James began investigating UPS in 2023 after an employee union, Teamsters Local 804, raised concerns about the company’s treatment of seasonal workers. These workers are employed on a temporary basis from October to January. The union’s director of operations, Josh Pomeranz, stated that while there isn’t evidence that the company’s top management was involved in or aware of the alleged wage theft, “these are just certain practices that you have to actively ignore, not to see it happening.”

Union Perspective

The union’s concerns focus on the day‑to‑day realities of seasonal workers, who often struggle to make ends meet. James echoed this sentiment at a news conference announcing the lawsuit: “We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays. And these individuals are struggling each and every day to make ends meet.”

Potential Impact

If the court rules in favor of the plaintiffs, UPS would face significant changes to its payroll and time‑keeping systems. The case also brings attention to the broader issue of how large corporations treat seasonal and temporary staff during peak periods.

Key Takeaways

• NY AG alleges UPS stole roughly $45 million from seasonal workers over six years.
• The lawsuit demands back pay, penalties, and a court order to overhaul payroll practices.
• UPS denies wrongdoing and claims to provide industry‑leading pay and benefits.

The lawsuit marks a pivotal moment in the fight for fair wages for seasonal and temporary employees in the logistics sector.