UPS workers in New York will receive more than $1 million from UPS after alleging the company illegally redirected money from their paychecks to a charitable campaign.
The wage theft lawsuit revolves around the shipping companyâ€™s annual fundraiser for the United Way. According to the workers, in 2019 and 2020 the company diverted money from their checks â€• typically a $1 or $2 each time â€• even though it didnâ€™t have their written permission to do so.
Those small deductions apparently added up among a group of roughly 6,000 workers. The total amount over two years came to $789,432, according to court documents. Adding in other damages, UPS agreed to pay out $1.1 million, plus attorney fees, to resolve the claims.
The United Way will keep the money that UPS donated. UPS didnâ€™t immediately respond to an email seeking comment on the settlement Monday.
The case was brought by members of Teamsters Local 804, which represents workers at the 14 UPS facilities. The unionâ€™s president, Vinnie Perrone, said workers should opt-in to the lawsuit to â€œmake the company pay for what they did wrong.â€
Fred Lubarsky, a UPS worker, said in a statement through the union that he noticed the deductions in his paycheck a couple years ago. â€œWhen I told my manager that I never agreed to this and wanted it to stop, he gave me the run-around,â€ Lubarsky said.
UPS has been raising money for the United Way for decades. The nonprofit says on its website that the shipping company was the first corporate partner to raise $1 billion for it, praising UPS for â€œmaking a difference across the nation.â€
UPS says the pool of money comes from employee contributions, plus a match from UPSâ€™ charitable foundation. UPS workers around the country chipped in more than $54 million in 2019, according to a UPS Foundation report. The company has more than 450,000 workers in the U.S.
But the workers who filed the lawsuit alleged that UPS managers havenâ€™t always been aboveboard in funding a campaign thatâ€™s brought the company praise.
â€œWhen I told my manager that I never agreed to this and wanted it to stop, he gave me the run-around.â€
– Fred Lubarsky, UPS employee and Teamsters member
According to the complaint, in past years UPS supervisors typically had a discussion with workers about the annual fundraiser, then encouraged them to sign authorization cards agreeing to have amounts taken out of their paychecks, either as one-time or recurring contributions. But in 2019, they say those agreements stopped, with many workers unaware that the deductions continued.
In their lawsuit, the workers faulted the way UPS allegedly incentivized managers to hit contribution targets at their facilities. The complaint said there are â€œcompelling adverse consequencesâ€ if a manager fails to meet quotas, and â€œcompelling positive consequencesâ€ if they do.
The Teamsters said any money workers donâ€™t claim from the settlement fund will go to St. Jude Childrenâ€™s Research Hospital and St. Maryâ€™s Hospital for Children. Nathaniel Charny, a lawyer who handled the case for the workers, called it â€œan excellent result for the members of Local 804.â€
Lubarsky said he was thinking of donating his share of the settlement â€œto a charity of my choice â€• not UPS.â€