On December 15, the Attorney General of New York filed a lawsuit against United Parcel Service (UPS) in the Manhattan Supreme Court, alleging that UPS failed to pay seasonal temporary workers the minimum wage, promised wages, and overtime in accordance with state and federal labor laws.
During the busy season from October to January, UPS hires thousands of seasonal temporary workers at at least 55 facilities across New York state. The Attorney General, Letitia James, stated that UPS’s illegal practices have caused seasonal workers to lose millions of dollars and is seeking a court order for UPS to reimburse current and former seasonal temporary workers who were underpaid.
The announcement from the Attorney General’s Office stated that UPS has been repeatedly and continuously withholding wages from thousands of seasonal delivery workers across various locations in New York, based on years of investigation by the office.
The investigation uncovered several practices by UPS, such as incomplete recording of hours worked during peak holiday demand, excessive use of unpaid labor, and manipulation of timekeeping systems to reduce payable hours for seasonal temporary workers essential to the company’s operations. Many temporary workers have been working more than 40 hours per week during peak holiday periods but UPS has failed to pay overtime as required by law, often requiring workers to clock out before completing their tasks.
For example, UPS only allows workers to clock in when they scan or deliver the first package, even though they have been on-site working or waiting for hours. Additionally, UPS automatically deducts 30 minutes for meal breaks regardless of whether the worker actually takes a break and edits workers’ time sheets to reduce paid hours.
Workers often arrive at their scheduled shifts to start deliveries only to find that the packages or drivers needed for the delivery have not arrived. During these delays, they are asked to perform other tasks like preparing vehicles or loading packages, which often go unrecorded and unpaid. The investigation also found that UPS uses the latest clock-in time or delayed clock-in time set by employees as the basis for calculation, effectively not paying for work that starts earlier.
UPS has responded to the lawsuit by stating that they are aware of the announcement from the Attorney General’s Office but will not comment on ongoing litigation based on company policy. They have emphasized that they take all allegations of misconduct seriously and are conducting a thorough investigation into the matter.