Full Breakdown
New York Attorney General Sues UPS Over Allegations of Wage Theft from Seasonal Workers
12/15/2025, 7:44:54 PM
Allegations of Wage Theft
On December 15, 2025, New York Attorney General Letitia James announced a lawsuit against the delivery company UPS, accusing it of systematically cheating seasonal workers out of millions of dollars in wages. The lawsuit, filed in Manhattan Supreme Court, alleges that UPS has engaged in practices that violate both state and federal labor laws, including failing to accurately record hours worked, requiring off-the-clock labor, and manipulating timekeeping systems to reduce paid hours. According to the attorney general's office, these actions have persisted for years, particularly during the peak holiday season from October to January, when UPS hires thousands of temporary workers across at least 55 facilities in New York state.
Investigation Findings
An investigation initiated in 2023 revealed that UPS's practices resulted in significant financial losses for seasonal workers, many of whom are financially vulnerable. The lawsuit claims that UPS delayed clock-ins, auto-deducted unpaid lunch breaks, retroactively edited timesheets, and avoided paying overtime. Attorney General James emphasized that these workers "earned every dollar of their wages," and the company had no right to withhold those earnings. The state is seeking restitution for affected workers and an injunction to enforce reforms at UPS to prevent future violations.
Impact on Workers
The seasonal employees impacted by these alleged practices include assistants to full-time drivers and seasonal drivers using their personal vehicles for deliveries. Joshua Pomeranz, director of operations at Teamsters Local 804, noted that many seasonal workers are unaware of their rights and have never met a union official. He described the demographic of these workers as financially vulnerable, often lacking stable housing or cellphones, and taking these jobs out of necessity.
Broader Context of Wage Theft in New York
Wage theft has been recognized as a form of larceny in New York since legislation passed in 2023, allowing prosecutors to impose stronger penalties on offenders. The state estimates that nearly $1 billion in wages are lost annually due to wage theft, affecting tens of thousands of workers, particularly immigrants and low-income individuals who are more susceptible to exploitation. Pomeranz indicated that due to "sloppy recordkeeping" by UPS, the exact number of workers affected by wage theft remains unclear, but it is likely to be in the tens of thousands over the past six years.
Official Statements & Responses
In response to the lawsuit, UPS stated that it is aware of the allegations and, as a matter of policy, does not comment on ongoing litigation. The company asserted its commitment to providing industry-leading pay and benefits to its employees in New York and emphasized its adherence to applicable laws.
Conflicting Reports & Gaps
While the lawsuit claims that tens of thousands of workers have been affected, the exact number remains uncertain due to inadequate recordkeeping by UPS. Additionally, the union has not specified the total number of impacted workers, highlighting a gap in available data regarding the full extent of the alleged wage theft.
