New York City, December 16, 2025
New York Attorney General Letitia James has filed a lawsuit against UPS, claiming the company underpaid tens of thousands of seasonal workers by withholding around $45 million in wages. This lawsuit highlights issues with labor practices affecting seasonal employees, raising concerns about the balance between business operations and fair compensation. UPS has denied the allegations, stating it maintains a commitment to industry-leading pay while navigating challenges with its temporary seasonal workforce.
New York, NY
New York AG Sues UPS Over Alleged Underpayment of Seasonal Workers
Attorney General Letitia James Accuses Shipping Giant of Wage Violations
In a significant move that has captured the attention of workers’ rights advocates and business observers alike, New York Attorney General Letitia James has filed a lawsuit against United Parcel Service (UPS). The lawsuit alleges that the company systematically underpaid tens of thousands of seasonal employees over the past six years, withholding approximately $45 million in wages. This case highlights ongoing concerns regarding labor practices, particularly for seasonal workers, and serves as a reminder of the important balance between business operations and fair employee compensation.
UPS, recognized for its iconic brown trucks and uniforms, has proudly positioned itself as a major player in the delivery market, handling an average of 22.4 million packages a day and generating $91.1 billion in revenue last year. The lawsuit reflects broader issues within the labor market, as seasonal positions often lack the stability and protections afforded to permanent employees. With UPS hiring thousands of temporary workers each year, particularly from October to January, this legal battle poses critical implications for both the company and its workers.
The Allegations of Wage Violations
The key allegations in the lawsuit include systematic underpayment of seasonal workers, such as driver helpers and seasonal support drivers. Specific practices outlined in the complaint indicate failures to compensate workers for all hours worked, including instances of off-the-clock labor and deductions for missed lunch breaks. These accusations raise important questions regarding the treatment of seasonal workers, a demographic that often relies heavily on adequate compensation during peak seasons.
UPS’s Response and the Company’s Commitment to Fair Pay
UPS has firmly denied the allegations, asserting that the company offers industry-leading pay and is committed to unlawful business practices. Emphasizing its dedication to fair compensation, UPS’s response highlights the complexities surrounding large-scale operations and the challenges in managing seasonal workforce dynamics. The company’s defense presents a counter-narrative to the concerns raised, portraying them as misinterpretations of its labor policies.
The Origin of the Investigation
The investigation into UPS’s treatment of seasonal workers was initiated in 2023, sparked by complaints from Teamsters Local 804. This labor union raised issues surrounding potential wage violations and mistreatment of seasonal staff, which prompted a deeper inquiry by the Attorney General’s Office. Following a thorough review of practices within UPS’s New York operations, findings suggested that the alleged violations were not mere errors but had become entrenched in the company’s operational protocols.
Potential Outcomes of the Lawsuit
The ramifications of this lawsuit could be substantial. The suit seeks back pay, potential penalties, and a court order mandating the company to cease the alleged off-the-clock work practices. If successful, the prosecution’s case could lead to significant financial restitution for impacted workers, thereby influencing UPS’s employment practices going forward. A favorable outcome for the employees could set a precedent for labor standards, resonating throughout similar businesses in the industry.
UPS’s Financial Landscape Amidst Challenges
Despite the legal challenges it faces, UPS continues to be a key player in the market. As of the most recent data, the company’s stock prices reflect a competitive market position, with current trading around $100.07. UPS’s ability to navigate this legal situation while maintaining operational efficiency will be scrutinized closely, especially as the company continues to rely on a large seasonal workforce for significant delivery demand.
Conclusion: The Impact on New York’s Labor Market
This lawsuit against UPS underscores evolving conversations around labor rights and corporate accountability in New York and nationwide. As the economy continues to benefit from entrepreneurial innovation and business resilience, addressing the concerns of workers—particularly seasonal employees—is crucial for fostering a fair and supportive labor market. Stakeholders, including consumers, continue to play a pivotal role in advocating for fair practices, examining how large corporations balance their operational strategies with ethical employment standards. Engaging in this dialogue will remain vital as we support the growth and sustainability of New York’s economy.
Frequently Asked Questions (FAQ)
What is the lawsuit against UPS about?
The lawsuit alleges that UPS systematically underpaid tens of thousands of seasonal workers over the past six years, withholding approximately $45 million in wages. The company is accused of failing to properly compensate driver helpers and seasonal support drivers, requiring off-the-clock labor, and deducting pay for missed lunch breaks.
How did the investigation into UPS begin?
The investigation began in 2023 after Teamsters Local 804 raised concerns about the company’s treatment of seasonal workers. This led the New York Attorney General’s Office to open an inquiry into the matter.
What is UPS’s response to the allegations?
UPS has denied the allegations, stating it offers industry-leading pay and is committed to following the law. The company emphasizes its dedication to fair compensation practices.
What are the potential outcomes of the lawsuit?
The lawsuit seeks back pay, penalties, and a court order requiring UPS to end off-the-clock work practices. If successful, it could lead to significant financial restitution for affected workers and enforce changes in UPS’s employment practices.
| Feature | Description |
|---|---|
| Allegations | Systematic underpayment of seasonal workers, including driver helpers and seasonal support drivers, over the past six years. |
| Estimated Amount Withheld | Approximately $45 million in wages. |
| Specific Practices | Failure to compensate for all hours worked, off-the-clock labor, and deductions for missed lunch breaks. |
| UPS’s Response | Denies the allegations, stating it offers industry-leading pay and is committed to following the law. |
| Investigation Initiation | Begun in 2023 after concerns raised by Teamsters Local 804 regarding the treatment of seasonal workers. |
Now Happening on X
- @BLaw (December 16, 2025): New York Attorney General Letitia James sued United Parcel Service Inc. for allegedly withholding millions in pay to thousands of seasonal workers for all hours worked during the peak holiday seasons. View on X
- @WETM18News (December 15, 2025): NY AG Letitia James sued United Parcel Service Inc., alleging they stole millions from seasonal workers. The lawsuit claims UPS makes thousands of temporary employees work unpaid during the holiday rush through wage theft. View on X
- @YahooNews (December 16, 2025): UPS stole tens of millions of dollars in pay from seasonal workers who help the shipping giant deliver packages during the busy holiday season, forcing some to clock in well after their shifts started and deducting pay for lunch breaks they never took, New York Attorney General. View on X
- @BTPMNPR (December 15, 2025): NYAG Letitia James is accusing UPS of exploiting its seasonal rush workers, alleging systemic delays to clock ins, unpaid work and training, and editing time sheets to avoid overtime pay. View on X
- @NBC10Boston (December 16, 2025): New York Attorney General Letitia James filed a lawsuit alleging that UPS stole tens of millions of dollars in pay from seasonal workers, forcing some to clock in well after their shifts started and deducting pay for lunch breaks they never took. View on X
- @Law360 (December 15, 2025): UPS “played the Grinch” by failing to pay seasonal workers it hires between October and January for work they performed outside their shifts, leading to millions in unpaid wages and overtime, New York Attorney General Letitia James said Monday. View on X
- @WKTV (December 16, 2025): New York Attorney General Letitia James has filed a lawsuit accusing UPS of stealing tens of millions of dollars in pay from seasonal workers who help deliver packages during the busy holiday season. View on X
- @SPECNews1ROC (December 15, 2025): New York Attorney General Letitia James is suing one of the world’s largest delivering companies, accusing it of cheating seasonal workers out of millions of dollars in pay. View on X
- @SPECNews1BUF (December 16, 2025): New York Attorney General Letitia James is suing one of the world’s largest delivering companies, accusing it of cheating seasonal workers out of millions of dollars in pay. View on X
- @wabenews (December 15, 2025): Atlanta-based company UPS stole tens of millions of dollars in pay from seasonal workers who help the shipping giant deliver packages during the busy holiday season, New York Attorney General Letitia James alleged in a lawsuit Monday. View on X
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