Attorney General James Sues UPS for Cheating Seasonal Workers Out of Millions of Dollars

December 15, 2025

NEW YORK - New York Attorney General Letitia James today filed a lawsuit against United Parcel Service, Inc. (UPS) for repeatedly and persistently stealing wages from thousands of seasonal delivery workers across New York state. An investigation by the Office of the Attorney General (OAG) found that for years, UPS has shortchanged seasonal workers who keep the company running during peak holiday demand by failing to record all hours worked, requiring widespread off-the-clock labor, and manipulating timekeeping systems to reduce paid hours. Attorney General James alleges that these unlawful practices deprived workers of millions of dollars and is asking the court to order UPS to pay restitution for current and former seasonal workers whose wages were unlawfully withheld.

"UPS built its holiday business on the backs of workers who were not paid for their time and labor," said Attorney General James. "UPS's seasonal employees work brutal hours in the cold to deliver the holiday packages families across the country count on. Instead of compensating these workers fairly for their labor, UPS has played the Grinch. I am fighting to get these workers their money back and stop UPS from continuing its cruel and unlawful wage theft."

"We at Teamsters local 804 deeply appreciate the work Attorney General Letitia James and her office have done to hold corporations like UPS accountable," said Vincent Perrone, President, International Brotherhood of Teamsters Local 804. "UPS thought they could exploit seasonal workers by not paying them for all time worked. But the Teamsters and the State of New York will always stand up to corporate greed and abuse. Thank you for standing with us and with working people across our great state."

"Joint Council 16 thanks the Attorney General's office for continuing to uphold the rights of working New Yorkers," said Thomas Gesualdi, President of International Brotherhood of Teamsters Joint Council 16. "Too often, we see corporations getting away with the exploitation and abuse of vulnerable workers. Teamsters, alongside Attorney General Letitia James, will always fight back against corporate greed and malfeasance. We are proud to stand together and bring UPS into compliance with the law. Wage theft is theft."

UPS is the largest package delivery company in the world, generating approximately $90 billion in annual revenue and employing nearly 500,000 people worldwide. Each year between October and January, the company hires thousands of temporary workers at more than 50 facilities in New York state. These employees include Driver Helpers, who assist full-time drivers with deliveries, and Seasonal Support Drivers, who use their personal vehicles to help the company meet delivery demand. In 2023, OAG opened an investigation after Teamsters Local 804 raised concerns about widespread nonpayment issues affecting seasonal delivery workers. After a thorough review, OAG ultimately concluded that UPS's violations were not isolated errors, but rather repeated and persistent practices embedded across its New York operations.

Seasonal workers told OAG that they often reported to facilities or roadside meet-up points and then waited, sometimes for hours, without pay, and in some cases were sent home without ever clocking in. They also described going unpaid for time spent traveling between assignments, watching required training videos, returning undelivered packages, and handing in equipment at the end of their jobs. For workers brought on for just a few intense months each year, these unpaid hours meant losing critical seasonal income.

The OAG investigation revealed that UPS used unlawful timekeeping practices that led to systematic undercounting of hours. At times, UPS delayed clock-ins until a worker scanned or delivered the first package, even when workers had already been working or waiting on-site, in some cases for hours. The company automatically deducted 30-minute meal breaks regardless of whether workers took them and edited employees' timesheets to reduce their paid hours. The OAG also found that UPS calculated pay based on a worker's scheduled start time or delayed clock-in, whichever was later, ensuring that any early work went entirely unpaid.

Workers often reported to work at the start of their shifts only to discover that the packages or drivers needed to begin deliveries had not yet arrived. During these delays, they would frequently perform other tasks - such as preparing vehicles, loading packages, or traveling between meeting points - but none of this labor was recorded or compensated. Many seasonal workers logged more than 40 hours a week during peak holiday periods, yet UPS failed to provide legally required overtime pay. Workers were also forced to clock out before completing assignments and were denied wages for mandatory training, work performed during supposed meal breaks, and other required tasks that UPS failed to record as compensable time.

Attorney General James argues that UPS's systematic undercounting of hours and the resulting underpayment of millions of dollars to seasonal workers constitute clear violations of New York Labor Law, including the state's minimum wage, promised wage, overtime, wage-statement, and recordkeeping requirements. The lawsuit also alleges that UPS's actions violate the federal Fair Labor Standards Act. Attorney General James is asking the court to order restitution for the workers who were denied wages and to require UPS to adopt sweeping reforms that end off-the-clock work and other unlawful practices.

This case is being handled by Assistant Attorneys General Jessica Agarwal, Anastasia Eriksson, and Julio Sharp-Wasserman under the supervision of Civil Enforcement Section Chief Fiona J. Kaye, Deputy Labor Bureau Chief Young Lee, and Labor Bureau Chief Karen Cacace with assistance from Research and Analytics Data Scientist Blythe Davis under the supervision of Director of Research and Analytics Victoria Khan and Deputy Director of Research and Analytics Gautam Sisodia, as well as Legal Assistants Yadira Filpo and Berenice Peck. Former Research and Analytics Data Scientists Jasmine McAllister, Kenneth Morales, and Chansoo Song also assisted. The Labor Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.