UPS’ timekeeping practices have denied millions in wages to seasonal workers who are scraping by with part-time work sorting gifts, the New York attorney general charged in a new lawsuit filed Monday.
The world’s largest package delivery service is accused of requiring its peak-season employees to regularly work brutal hours for no additional pay, typically at the start and end of their shifts, of failing to accurately log the time they put in and otherwise manipulating internal timekeeping systems to minimize compensation.
“[D]espite its size, resources, and presumable skill at managing logistics, UPS persistently underpays seasonal workers, a particularly vulnerable group,” the Manhattan Supreme Court complaint reads.
The persistent practices have allegedly impacted thousands of workers at at least 55 UPS facilities across New York, including temp workers who assist full-time drivers with deliveries and workers who use their personal vehicles to help meet overwhelming holiday-season demand.
“We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays. These individuals are struggling each and every day to make ends meet,” AG Letitia James told reporters at her downtown office Monday. “We believe it will be millions and millions of dollars, perhaps upward of $45 million,” the AG estimated of potential restitution in the case.
The investigation leading to Monday’s suit was spurred in 2023 by complaints of nonpayment reported by Teamsters Local 804, James said.
Workers told the AG’s office that it was typical for them to wait around for hours after reporting to facilities or roadside meetup points, without the ability to clock in or clock off. Time spent traveling to different assignments, returning packages and handing in equipment also regularly went unpaid.
Often, the clock didn’t start for workers until they scanned or delivered their first package of the day, James’ office said Monday.
In a statement, a UPS spokesman said the company was aware of the suit.
“UPS 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.
The suit concerns seasonal workers currently employed by UPS in New York for the peak season — running from October through January — and during the same periods annually, dating back to 2019. The AG said she hoped other states would join the action.
UPS driver and Local 804 Shop Steward Juan Acosta said the company squeezes as much production as possible out of part-time workers desperate for a paycheck, who don’t have the benefit of union protections.
“No one should have their wages stolen,” Acosta said. “They’re just there to earn a living like we earn a living.”
