New York Attorney General Letitia James on Monday filed a lawsuit against United Parcel Service, Inc. for allegedly stealing wages from thousands of seasonal delivery workers across New York state.
An investigation by the Office of the Attorney General found that UPS shortchanged seasonal workers by failing to record all hours worked, requiring widespread off-the-clock labor, and manipulating timekeeping systems to reduce paid hours.
James alleged that these practices deprived workers of millions of dollars and is asking the court to order UPS to pay restitution for current and former seasonal workers whose wages were unlawfully withheld.
“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” James said in a statement. “UPS’s seasonal employees work brutal hours in the cold to deliver the holiday packages families across the country count on. Instead of compensating these workers fairly for their labor, UPS has played the Grinch."
Each year between October and January, UPS hires thousands of temporary workers at more than 50 facilities in New York, James said. These employees include Driver Helpers, who assist full-time drivers with deliveries, and Seasonal Support Drivers, who use their personal vehicles to help the company meet delivery demand.
In 2023, OAG opened an investigation after Teamsters Local 804 raised concerns about widespread nonpayment issues affecting seasonal delivery workers. After a review, OAG ultimately concluded that UPS’s violations were not isolated errors, but rather repeated and persistent practices embedded across its New York operations.
Seasonal workers told OAG that they often reported to facilities or roadside meet-up points and then waited, sometimes for hours, without pay, and in some cases were sent home without ever clocking in. They also described going unpaid for time spent traveling between assignments, watching required training videos, returning undelivered packages, and handing in equipment at the end of their jobs. For workers brought on for just a few intense months each year, these unpaid hours meant losing seasonal income.
The OAG investigation revealed that UPS used unlawful timekeeping practices that led to systematic undercounting of hours. At times, UPS delayed clock-ins until a worker scanned or delivered the first package, even when workers had already been working or waiting on-site, in some cases for hours. The company automatically deducted 30-minute meal breaks regardless of whether workers took them and edited employees’ timesheets to reduce their paid hours. The OAG also found that UPS calculated pay based on a worker’s scheduled start time or delayed clock-in, whichever was later, ensuring that any early work went entirely unpaid.
Workers often reported to work at the start of their shifts only to discover that the packages or drivers needed to begin deliveries had not yet arrived. During these delays, they would frequently perform other tasks – such as preparing vehicles, loading packages, or traveling between meeting points – but none of this labor was recorded or compensated. Many seasonal workers logged more than 40 hours a week during peak holiday periods, yet UPS failed to provide legally required overtime pay. Workers were also forced to clock out before completing assignments and were denied wages for mandatory training, work performed during supposed meal breaks, and other required tasks that UPS failed to record as compensable time.
“UPS thought they could exploit seasonal workers by not paying them for all time worked," said Vincent Perrone, president of the International Brotherhood of Teamsters Local 804. "But the Teamsters and the State of New York will always stand up to corporate greed and abuse."
A spokesperson for UPS said the company is aware of the lawsuit.
"UPS denies the unfounded allegation of intentionally underpaying UPS employees," the spokesperson said in a statement. "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."
