The Atlanta-basedUnited Parcel Service, Inc., UPS, has been accused of shortchanging theirseasonal workersby requiringoff-the-clock laborand failing to count all hours worked, a lawsuit says.
Thesuit, filed in New York by Attorney General Letitia James on Dec. 15, alleges the companyintentionally manipulated timekeeping systems to reduce the total number of paid hours for holiday workers and seasonal employees and commit wage theft.
"UPS's seasonal employees work brutal hours in the in the cold to deliver the holiday packages families across the country count on," James said in a news release. "Instead of compensating these workers fairly for their labor, UPS has played the Grinch."
What does the lawsuit say?
The 21-page complaint says during the peak delivery season, from October to January, UPS hires thousands of temporary workers, including across 55 facilities in the state of New York.
These fall under two categories, called "Driver Helpers" and "Seasonal Support Drivers." The former accompanies full-time employees to help them deliver packages faster, while the latter use their own vehicles to deliver packages on behalf of UPS. These employees can start shifts by going to an UPS warehouse or by meeting a driver on their route.
An investigation into wages for these workers was opened in 2023 when Teamsters Local 804, a labor union, reported nonpayment issues.
James accuses the company of not accurately keeping records of when seasonal workers start their shifts. In some cases workers waited in the field to clock in or at warehouses for hours while the trucks are loaded.
The lawsuit also says the workers continue to complete work for the company after they have clocked out.
"UPS tells some workers in the field to return work-related items to UPS facilities after they are clocked out for the day. Some workers are even asked to work for hours off the clock in the evening," the lawsuit says.
This extends to other aspects of the job that are necessary for their employment but may not actually be time spent delivering packages. The lawsuit says workers have not been paid for time they spend watching training videos, traveling to meet-up points, doing work duties during their lunch period and more.
The issue is systemic, James alleges, with the lawsuit saying UPS "even edits timekeeping to reduce compensable hours."
UPS responds to wage theft allegations
"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," according to the release. "The lawsuit also alleges that UPS's actions violate the federal Fair Labor Standards Act."
In a statement to the Associated Press, UPSresponded to the allegationsand said the company "takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees."
"We offer industry-leading pay and benefits to our more than 26,000 employees in New York, and we remain committed to following all applicable laws," the company told the outlet.
UPS moves headquarters to Atlanta
UPS moved its corporate headquarters to Atlanta in 1994, in Sandy Springs, and currently operates as the largest package delivery company in the world.
The company brings in approximately $90 billion annually and employs 500,000 people around the world, according to the attorney general's office.
Irene Wright is the Atlanta Connect reporter with USA Today's Deep South Connect team. Find her on X @IreneEWright or email her at ismith@usatodayco.com.
This article originally appeared on USA TODAY:Georgia-based UPS shortchanged seasonal employees, NY lawsuit says
