New York Sues UPS, Alleging Persistent Underpayment of Seasonal Workers

The New York State Office of the Attorney General (OAG) sued UPS Monday (Dec. 15), alleging that the package delivery company “repeatedly and persistently” underpaid seasonal workers by requiring them to work off the clock, failing to accurately record all hours worked, and manipulating timekeeping systems to reduce paid hours.

The lawsuit centers on UPS’ practices involving temporary workers, including driver helpers and seasons support drivers, who are hired each year between October and January, the OAG said in a Monday press release.

“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” New York Attorney General Letitia James said in the release.

Reached by PYMNTS, UPS said in an emailed statement that it is aware of the lawsuit.

“UPS denies the unfounded allegation of intentionally underpaying UPS employees,” the company said. “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 OAG’s complaint alleges that UPS did not pay seasonal workers for time spent traveling between assignments, watching required training videos, returning undelivered packages and handing in equipment at the end of their jobs, according to the release.

It also alleges that the company delayed clock-ins until a worker scanned or delivered the first package, automatically deducted 30-minute meal breaks regardless of whether workers took them, and edited employees’ timesheets to reduce paid hours, per the release.

The complaint also alleges that UPS failed to compensate workers for work performed when packages or drivers had not yet arrived, failed to provide legally required overtime pay, and forced workers to clock out before completing assignments, according to the release.

The lawsuit asks the court to order UPS to pay restitution to the workers and reform its practices, per the release.

It was reported in October that UPS is increasing its use of gig delivery drivers who use their own vehicles to deliver smaller, low-volume parcels. While the company has long used gig drivers during the busy holiday season, it is hiring more of these drivers to deal with the increasingly common surges of package volume throughout the year.