New York Attorney General Letitia James has filed a lawsuit against United Parcel Service, alleging the company underpaid up to 15,000 seasonal workers during the 2024 holiday season. The suit claims UPS failed to properly compensate employees for overtime and misclassified roles to avoid wage obligations.
- 15,000 seasonal UPS workers in New York allegedly underpaid during 2024 holiday season
- Claim of misclassification leading to denial of overtime pay for hours exceeding 40 per week
- Estimated restitution demand of $18 million based on payroll analysis
- Alleged use of internal reclassification to bypass state wage laws
- Legal action aims to block future misclassification in seasonal hiring
- Case may influence labor standards for temporary workers nationwide
The New York State Attorney General’s office launched legal action against United Parcel Service (UPS) on December 15, 2025, accusing the logistics giant of systematically violating state labor laws during peak holiday operations. The complaint centers on the company's handling of temporary workers hired between September and December 2024, with allegations that more than 15,000 individuals were denied rightful overtime pay and other compensation due under New York labor statutes. According to court filings, UPS allegedly reclassified warehouse and delivery staff as exempt from overtime provisions despite performing non-exempt tasks such as package sorting, loading, and route execution. The agency asserts that this classification allowed UPS to circumvent requirements that mandate time-and-a-half pay for hours worked beyond 40 in a week. Internal records cited in the lawsuit show hundreds of workers consistently clocking over 50 hours weekly without proper compensation. The lawsuit seeks restitution for affected employees, with damages estimated at $18 million based on preliminary review of payroll data and work logs. Additionally, the state is requesting injunctive relief to prevent future misclassification practices across all seasonal hiring programs in New York. The case could set a precedent for how temporary workforce arrangements are governed during high-demand periods nationwide. The legal move comes amid rising scrutiny of gig and seasonal labor practices across major retailers and logistics firms. If upheld, the ruling may prompt broader reforms in how companies manage temporary staffing during critical business cycles, particularly in densely populated urban areas like New York City, where the majority of the impacted workers were employed.