UPS will pay more than $1,000,000 to New York UPS employees after it was alleged that the company improperly diverted money from its paychecks for a charity campaign.
The wage theft lawsuit revolves around the shipping company’s annual fundraiser for the United Way. According to the workers, in 2019 and 2020 the company diverted money from their checks ― typically a $1 or $2 each time ― even though it didn’t have their written permission to do so.
All of these small deductions seem to have added up for a group that included roughly 6,000 people. According to the report, $789432 was paid over two years. court documents. UPS also agreed to pay $1.1 million plus legal fees to settle the claims.
UPS money will be kept by the United Way. UPS didn’t immediately respond to an email seeking comment on the settlement Monday.
Teamsters Local 804, which represents employees at 14 UPS plants, brought the case. The union’s president, Vinnie Perrone, said workers should opt-in to the lawsuit to “make the company pay for what they did wrong.”
Fred Lubarsky (a UPS worker) stated that he first noticed the deductions in him paycheck a few years ago. “When I told my manager that I never agreed to this and wanted it to stop, he gave me the run-around,” Lubarsky said.
UPS has been raising funds for United Way causes for many decades. According to the nonprofit, it has raised money for United Way since decades. website that the shipping company was the first corporate partner to raise $1 billion for it, praising UPS for “making a difference across the nation.”
UPS says the pool of money comes from employee contributions, plus a match from UPS’ charitable foundation. UPS workers across the country contributed. more than $54 millionA UPS Foundation report shows that the company will reach $1 billion in revenue by 2019. The company is more than 450,000 workersThe U.S.
But the workers who filed the lawsuit alleged that UPS managers haven’t always been aboveboard in funding a campaign that’s brought the company praise.
“When I told my manager that I never agreed to this and wanted it to stop, he gave me the run-around.”
The following is an extract from the complaintIn the past, UPS supervisors would have a conversation with employees about annual fundraising and then encourage them to sign authorization cards agreeing that they will be able to have money taken from their paychecks as either one-time contributions or recurring. In 2019, however, they claim those agreements were broken. Many employees didn’t know that deductions had continued.
The workers criticized the way UPS incentivized managers to meet contribution targets at their plants. The complaint said there are “compelling adverse consequences” if a manager fails to meet quotas, and “compelling positive consequences” if they do.
The Teamsters said any money workers don’t claim from the settlement fund will go to St. Jude Children’s Research Hospital and St. Mary’s Hospital for Children. Nathaniel Charny, a lawyer who handled the case for the workers, called it “an excellent result for the members of Local 804.”
Lubarsky stated that he had thought of giving his share. of the settlement “to a charity of my choice ― not UPS.”