by New York City, New York — New York state has filed a civil lawsuit against UPS, accusing the delivery giant of stealing millions of dollars in wages from thousands of seasonal workers by using unlawful timekeeping practices during peak holiday periods.
The lawsuit, announced Monday by New York Attorney General Letitia James, alleges that UPS systematically underpaid seasonal employees who helped the company meet surging demand, particularly during the holiday rush. The case was filed in New York state court and seeks back pay, injunctive relief, and changes to company practices.
Allegations of Unlawful Timekeeping
According to the complaint, UPS violated state labor laws by failing to pay seasonal workers for all hours worked. The lawsuit focuses on two groups: Driver Helpers and Seasonal Support Drivers, who assist full-time drivers with package delivery during high-volume periods.
State prosecutors allege that UPS delayed clock-in times until workers scanned a package or completed a delivery — even when they had been scheduled to start work earlier. As a result, employees were allegedly performing job-related duties off the clock, without compensation.
The suit also claims UPS automatically deducted 30-minute meal breaks, regardless of whether workers actually took those breaks, a practice that can violate New York labor law when it results in unpaid working time.
Attorney General’s Office Calls Practices Systemic
Attorney General James characterized the alleged conduct as part of a broader pattern that benefited UPS financially at the expense of seasonal labor.
“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.”
James accused the company of prioritizing profits over compliance, adding that instead of fairly compensating workers, UPS “played the Grinch.”
The lawsuit asserts that the alleged wage theft impacted thousands of workers across New York, potentially totaling millions of dollars in unpaid wages.
UPS Pushes Back on the Claims
UPS has denied intentionally underpaying employees and says it complies with all applicable labor laws.
“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 company said in a statement responding to the lawsuit.
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The Atlanta-based company employs nearly 500,000 people worldwide and reported more than $90 billion in revenue last year, according to state filings cited in the complaint.
Legal Stakes and Remedies Sought
The lawsuit seeks several forms of relief, including:
- Back pay for affected seasonal workers in New York
- A court order prohibiting off-the-clock work
- Mandatory changes to UPS’s timekeeping and payroll systems
- Oversight to ensure future compliance with state labor laws
If successful, the case could force UPS to overhaul its scheduling and clock-in practices statewide and potentially influence how large employers manage seasonal labor across the industry.
Broader Impact on Seasonal and Gig-Style Work
The case highlights growing scrutiny of temporary and seasonal employment models, particularly in logistics and delivery sectors that rely heavily on short-term labor during peak demand.
Labor advocates argue that automatic meal deductions and delayed clock-ins are among the most common wage violations, disproportionately affecting workers with limited bargaining power and tight schedules.
State officials have increasingly targeted these practices, signaling that companies may face heightened enforcement if they rely on automated systems that result in unpaid work time.
What Comes Next
UPS will have an opportunity to respond formally in court, and the case is expected to move through pretrial proceedings in the coming months. Depending on the outcome, the lawsuit could result in significant financial penalties and set a precedent for how New York enforces wage laws against major employers.
For now, the allegations place renewed attention on the treatment of seasonal workers who play a critical role in keeping supply chains moving during the busiest times of the year.
Do you think companies should face stricter penalties for timekeeping violations involving seasonal workers? Share your thoughts in the comments below.
