UPS is facing serious allegations that it failed to pay seasonal workers properly during the busy holiday season, according to a lawsuit filed Monday by New York Attorney General Letitia James. The lawsuit claims the shipping giant forced employees to clock in late, deducted pay for lunch breaks they never took, and engaged in other unfair pay practices that deprived workers of tens of millions of dollars in wages.

The Manhattan state court filing targets UPS for “repeatedly and persistently” failing to compensate driver helpers—workers who assist with deliveries—and seasonal support drivers, who often use their personal vehicles to make deliveries. James estimates that over the last six years, UPS deprived tens of thousands of seasonal workers of approximately $45 million in pay.

“This lawsuit is about holding a major company accountable for shortchanging workers who are critical to its operations,” James said. “We often don’t think about these workers when we’re opening gifts during the holidays, yet they are struggling every day to make ends meet.”

The lawsuit seeks back pay for affected workers, penalties, and a court order requiring UPS to revise its payroll and timekeeping systems, including an end to off-the-clock work.

Allegations Detail Widespread Payroll Issues

According to the complaint, UPS allegedly forced seasonal employees to start working before officially clocking in, meaning they were performing tasks without pay. Additionally, some workers had pay deducted for lunch breaks they never actually took. The practices were reportedly widespread, affecting large numbers of temporary employees hired during peak seasons from October through January.

Seasonal workers, while only employed for a few months, play a crucial role in UPS’s operations, particularly during the holidays when package volume spikes. In 2023, UPS reported delivering an average of 22.4 million packages per day and generating $91.1 billion in revenue, highlighting the scale and importance of its workforce.

“These seasonal employees are essential to UPS’s ability to operate smoothly during its busiest times,” James said. “It is unacceptable for the company to withhold wages or make it difficult for workers to be paid fairly.”

UPS Responds to the Allegations

In response to the lawsuit, UPS issued a statement saying it takes the allegations seriously but denies any intentional wrongdoing. The company emphasized that it offers competitive pay and benefits to its employees, including more than 26,000 in New York.

“We are aware of the lawsuit and take all accusations seriously,” the statement said. “We deny the unfounded allegation of intentionally underpaying UPS employees. We remain committed to following all applicable laws and providing industry-leading pay and benefits.”

Investigation Triggered by Union Concerns

James’ office began investigating UPS in 2023 after the Teamsters Local 804 raised concerns about seasonal workers’ treatment. Josh Pomeranz, the union’s director of operations, said that while there is no evidence top management was directly involved or condoned wage theft, the alleged practices were widespread enough that ignoring them would have been difficult.

“These are practices that are hard not to notice,” Pomeranz said. “Even if management isn’t actively involved, these issues can happen when policies are not properly enforced or monitored.”

Broader Implications for Seasonal Workers

The lawsuit highlights the vulnerability of temporary and seasonal workers, who often have limited leverage to challenge unfair pay practices. Seasonal positions, though temporary, are vital to the company’s operations and can form an essential source of income for workers during the holiday season.

Attorney General James emphasized that the lawsuit is not only about recovering lost wages but also about ensuring that UPS improves its practices to prevent similar issues in the future. “These workers are the backbone of UPS’s peak operations,” she said. “They deserve to be treated fairly and compensated properly for the work they perform.”

What the Lawsuit Seeks

The legal action requests:

• Full back pay for all affected seasonal workers
• Penalties for violating labor laws
• A court order requiring UPS to implement proper timekeeping and payroll procedures
• A mandate to end off-the-clock work

If successful, the lawsuit could set a precedent for how large companies manage seasonal workforces and ensure that temporary workers are paid fairly for all hours worked.

The Road Ahead

As the case proceeds in Manhattan state court, UPS could face significant financial liability if the claims are proven. For the tens of thousands of seasonal workers affected, the lawsuit represents a chance to recover wages and ensure better treatment in future seasons.

The situation underscores the importance of transparency and accountability in large-scale operations, particularly for temporary and seasonal employees who are often essential to the company’s success yet can be overlooked in payroll practices.

Attorney General James and the union are calling on UPS to address these issues promptly, and the coming months will reveal whether the company will change its practices or face legal consequences.

If you want, I can also rewrite this version into an even longer, more in-depth article with background on seasonal work in the U.S., UPS’s history with labor disputes, and possible implications for other companies—something closer to a feature article. Do you want me to do that?