MANHATTAN, NEW YORK – New York Attorney General Letitia James announced Monday that her office is suing United Parcel Service, the world’s largest package delivery company, over allegations that seasonal employees were shortchanged on wages during the holiday season.
In a 21-page lawsuit filed in the New York Supreme Court, James claims UPS manipulated timekeeping systems, required off-the-clock work, and failed to accurately record hours, leaving many workers unpaid for several hours per day or denied proper overtime. The attorney general says these practices were widespread across the company’s New York operations, affecting thousands of temporary workers at more than 55 facilities during peak season from October through January.
“UPS built its holiday business on the backs of workers who were not paid for their time and labor,” James said. “Seasonal employees work brutal hours in the cold to deliver packages families rely on. Instead of compensating them fairly, UPS has engaged in unlawful wage theft. I am fighting to get these workers their money back and stop these practices.”
The lawsuit alleges that UPS delayed clock-ins until employees delivered their first packages, automatically deducted meal breaks regardless of whether they were taken, and failed to pay for travel between assignments, training, and returning undelivered packages. James also claims the company edited timekeeping records to reduce payable hours.
UPS stated that it does not comment on ongoing litigation but said it takes all accusations seriously and is investigating the matter. The company added it provides industry-leading pay and benefits to its 26,000 New York employees and is committed to complying with all laws.
The complaint cites violations of New York labor laws, including unpaid minimum wages, unpaid overtime, and inaccurate wage statements. Teamsters Local 804, which represents many of the seasonal workers, pledged to support the attorney general in holding UPS accountable.
James’ investigation began in 2023 after a local union raised concerns about payment practices, which revealed what she described as “repeated and persistent” issues rather than isolated errors. According to UPS’s own records, the company shipped an average of 22.4 million packages daily last year, totaling 5.7 billion for the year.
Josh Pomeranz, director of operations for Teamsters Local 804, said, “It’s important that the rule of law is upheld against corporations as much as it is against individuals. Money was taken from these workers that should not have been taken.”