In a significant appellate decision, the Ninth Circuit partially revived wage claims brought by four former seasonal workers against United Parcel Service (UPS). The plaintiffs, who were temporarily employed during the busy holiday period, alleged they were not properly compensated during and after their employment. The court’s ruling allows several of their claims to proceed, though not all survived scrutiny under federal labor law.
Key Allegations and Court Findings
The workers had argued that UPS failed to provide timely final paychecks after their seasonal contracts ended and that they were denied wages for hours worked. The Ninth Circuit found enough merit in the unpaid and late wage claims for them to move forward in district court. The panel determined that these issues fell squarely within California’s labor laws, which protect employees against delayed and missing pay.
However, the workers also brought breach of contract claims that the court rejected. The panel concluded these allegations were preempted by Section 301 of the Labor Management Relations Act (LMRA), which governs disputes involving collective bargaining agreements. Since the UPS employment relationship is governed by such an agreement, the breach claims were deemed to fall under federal, rather than state, jurisdiction.
Why It Matters
This decision underscores a common legal tension: how to reconcile state wage protections with federal labor frameworks. It also reaffirms that while individual wage claims may proceed, contract-based claims involving unionized settings often require a different legal route.
For UPS, the decision is a partial reprieve—major legal liability was curtailed, but the company still faces scrutiny over its pay practices. For seasonal workers, the ruling is a reminder that even short-term employment must be compensated in full and on time.
For further details, please contact the lawyers at Tobia & Lovelace Esq., LLC at 201-638-0990.