Purse pirates: UPS ripped off seasonal workers with unfair pay practices, lawsuit alleges

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NEW YORK (AP) — UPS stole tens of millions of dollars in pay from seasonal workers who help the shipping giant deliver packages during the busy holiday season, forcing some to clock in well after their shifts started and deducting pay for lunch breaks they never took, New York Attorney General Letitia James alleged in a lawsuit Monday.

Filed in state court in Manhattan, the lawsuit accuses UPS of “repeatedly and persistently” failing to properly compensate driver helpers, who assist with deliveries, and seasonal support drivers, who use their own vehicles to make deliveries. James estimated that in the last six years, UPS has deprived tens of thousands of seasonal workers of wages totaling about $45 million.

The lawsuit seeks back pay and penalties, plus a court order requiring UPS to end off-the-clock work and change its timekeeping and payroll practices. 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, according to its website.

“We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays,” James said at a news conference announcing the lawsuit. “And these individuals are struggling each and every day to make ends meet.”

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.”

“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 statement said.

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."