A UPS wrongful termination lawsuit is a legal claim that United Parcel Service fired an employee for an unlawful reason — most often retaliation for a complaint, discrimination based on a protected characteristic, or punishment for refusing to break safety rules. UPS has faced these claims for decades, and the cases that reached verdicts or settlements show both what workers have won and how aggressively the company contests liability.
If you are weighing a claim, two things matter most: which legal theory fits your firing, and which forum you have to use before you can sue. Both depend on facts the courts and the EEOC have already sorted through in prior UPS cases.
What Counts as Wrongful Termination at UPS
Being fired unfairly is not the same as being fired unlawfully. The UPS cases that have produced verdicts or EEOC action fall into a few recognizable categories.
Retaliation. Firing an employee for filing a complaint, a grievance, or a lawsuit is illegal under multiple federal and state statutes. Several of the largest verdicts against UPS have been retaliation cases, where the worker argued UPS invented a performance or honesty rationale to cover the real reason.
Discrimination. Terminations based on race, religion, disability, pregnancy, or age violate Title VII, the ADA, the Pregnancy Discrimination Act, or the ADEA. UPS has settled or litigated cases in each of these categories.
Whistleblower retaliation. Drivers who refuse to operate unsafe vehicles or who report safety violations are protected under the Surface Transportation Assistance Act. Workers who report fraud or other misconduct may be protected under state whistleblower statutes.
Notable UPS Wrongful Termination Verdicts
Gratton v. UPS — $237.6 Million, Then Vacated
In September 2024, a federal jury in Yakima, Washington awarded former driver Tahvio Gratton $237.6 million. Gratton, who is African American, alleged UPS subjected him to racial discrimination and a hostile work environment, then fired him in retaliation for his complaints. The verdict was $39.6 million in compensatory damages for emotional distress and $198 million in punitive damages.1Bloomberg. Former UPS Driver Wins $238 Million Verdict in Suit Over Firing2Gibson Dunn. Gibson Dunn Wins Motion for New Trial Wiping Out $237.6 Million Verdict Against UPS
On February 26, 2025, the U.S. District Court for the Eastern District of Washington wiped out the entire award. The court granted UPS’s renewed motion for judgment as a matter of law on punitive damages, finding no reasonable jury could have concluded UPS acted with the malice or reckless indifference required. It also ordered a new trial on compensatory damages, citing misconduct by Gratton’s attorney that it said had inflated the emotional-distress award.2Gibson Dunn. Gibson Dunn Wins Motion for New Trial Wiping Out $237.6 Million Verdict Against UPS The case was set for retrial.
Marlo v. UPS — Retaliation for a Wage Lawsuit
Michael Marlo spent 22 years as a UPS supervisor before being fired in what he said was payback for a 2003 class action accusing UPS of misclassifying California supervisors as exempt from overtime. He alleged the firing came through a sham investigation with a predetermined outcome, timed five months before his overtime case was set for trial.3FindLaw. Michael Marlo v. United Parcel Service4PR Newswire. UPS Supervisor Awarded $18,098,478 in Retaliatory Wrongful Termination Case
In August 2012, a federal jury in the Central District of California awarded Marlo $18.1 million: roughly $2.2 million in compensatory damages and nearly $16 million in punitive damages. The trial court cut the punitive award to $6.6 million, and in April 2015 a Ninth Circuit panel affirmed the reduced amount, finding that the vice president who fired Marlo was a managing agent and that his decision reflected company policy.5Teamsters for a Democratic Union. Fired Teamster Wins $6.6 Million UPS
Gnesda v. UPS — Whistleblower Fired Over Customer Overcharges
Michael Gnesda managed a Southern California UPS operation for 16 years before being fired in March 2002, officially for deducting one minute from a subordinate’s four-hour time sheet. Gnesda argued the time-sheet issue was pretext for retaliation against his internal complaints about surcharges UPS was levying on odd-sized packages, and testified that after he raised concerns he was given punitive assignments and escalating discipline.6Los Angeles Times. Jury Awards Nearly $21M in Wrongful Termination Suit7PlanSponsor. Jury Awards Nearly $21M in Wrongful Termination Suit
A Los Angeles County Superior Court jury awarded him nearly $21 million in 2005: $748,000 in compensatory damages and $20 million in punitive damages. UPS said the overcharge claims were unfounded and that the firing was about honesty, and indicated it was considering an appeal.
Galvan v. UPS — Safety Complaints and a 30-Year Driver
Richard Galvan drove feeder trucks for UPS for more than 30 years and served as a Teamsters Local 396 union steward before being fired in January 2017 for what UPS called “proven dishonesty.” Galvan alleged retaliation for years of health and safety complaints, discrimination based on age and a prior work injury, and said UPS had failed to act after a co-worker assaulted him and had forced him to operate vehicles in unsafe conditions.8MyNewsLA. Judge Defers Ruling on UPS Motion to Vacate Driver’s $5.45 Million Verdict
On March 6, 2023, a Los Angeles Superior Court jury awarded Galvan $5.45 million.9San Gabriel Valley Tribune. Fired UPS Driver Awarded $5.45 Million in Whistleblower Retaliation Suit UPS asked the court to vacate the verdict on the ground that Galvan’s claims were really about union activity and belonged before the National Labor Relations Board.
Discrimination Cases That Changed UPS Policy
Race: Buttram Class Action
Buttram v. UPS alleged that UPS discriminated against roughly 14,000 African American part-time hourly workers in the Pacific and Northwest regions by denying them promotions to part-time supervisor and full-time driver roles. A court approved a $12.14 million settlement in 1999, with ongoing monitoring of promotion rates for Black employees into supervisory and driver positions.10Lieff Cabraser. UPS Employment Discrimination
Religion: The $4.9 Million Grooming Policy Settlement
UPS enforced an appearance policy that barred male employees in customer-facing or supervisory roles from wearing beards or long hair. The EEOC alleged that since at least 2005, UPS had refused to hire or promote Muslim, Sikh, and Rastafarian workers whose faith required beards or uncut hair, denied religious accommodations, and sometimes moved employees with religious beards into back-of-facility positions.11EEOC. UPS to Pay $4.9 Million to Settle EEOC Religious Discrimination Suit
In December 2018, Judge Margo K. Brodie of the U.S. District Court for the Eastern District of New York entered a five-year consent decree. UPS paid $4.9 million to a class of affected workers and applicants, overhauled its religious accommodation process, trained managers and HR staff nationwide, publicized the availability of accommodations, and agreed to periodic reporting to the EEOC.
Disability: Rigid Leave Policies and Blanket Exclusions
In 2017, UPS paid $2 million to settle an EEOC action involving nearly 90 current and former employees. The agency alleged UPS automatically terminated workers who reached 12 months of leave without ever engaging in the ADA’s required interactive process to consider accommodations. UPS agreed to revise its accommodation policies, train administrators, and report accommodation requests to the EEOC for three years.12EEOC. UPS Settles Nationwide Disability Discrimination Suit
A Florida case involved a worker with diabetes whose previously approved accommodation for short breaks to monitor blood sugar was rescinded before he was fired. In March 2023, the court found UPS liable under the ADA, and a December 2023 consent decree required UPS to pay $150,000, reinstate the employee, set up an internal hotline for disability complaints, and train HR, supervisors, and managers.13EEOC. United Parcel Service to Pay $150,000 to Settle EEOC Disability Discrimination Lawsuit
In 2023, the EEOC also sued UPS in the Northern District of Illinois, alleging the company categorically barred deaf and hearing-impaired applicants from driving vehicles over 10,000 pounds even when they held Department of Transportation exemptions qualifying them for the job.14EEOC. EEOC Sues UPS for Disability Discrimination in Hiring
Pregnancy: Young v. UPS
Peggy Young was a part-time UPS driver whose doctor imposed a 20-pound lifting restriction during pregnancy. UPS required drivers to handle packages up to 70 pounds and refused her a light-duty assignment, even though UPS offered light duty to workers injured on the job, workers with ADA-covered disabilities, and workers who had lost DOT certifications. In March 2015, the U.S. Supreme Court ruled 6-3 in Young’s favor, holding that a pregnant worker can establish disparate treatment by showing she was denied an accommodation given to other workers with similar limitations, and that an employer cannot justify the gap by pointing to cost or convenience.15Justia. Young v. United Parcel Service, Inc. Young and UPS settled on undisclosed terms in October 2015.16Constangy. Young and UPS Settle Pregnancy Lawsuit
Safety Whistleblower Protection for UPS Drivers
The Surface Transportation Assistance Act makes it illegal for a trucking employer to retaliate against a driver who refuses to operate a vehicle the driver reasonably believes would violate federal safety regulations, or who reports safety issues to authorities.17Whistleblowers.gov. Surface Transportation Assistance Act
A 2019 case shows how it operates. A UPS Freight driver in Londonderry, New Hampshire refused to operate a truck that lacked either a permanent electronic logging device or a mount for a portable one. UPS fired him for “gross insubordination,” later reduced the termination to a suspension, and then harassed him after he returned to work. OSHA found the driver had refused in good faith, that his supervisor had not been trained on the relevant ELD regulations, and that management had tried to pressure him into breaking the rules. OSHA ordered UPS Freight to pay roughly $48,000 in back wages, compensatory damages, and punitive damages, and to scrub all references to the incident from the driver’s personnel file.18U.S. Department of Labor. OSHA Backs UPS Driver Who Refused to Drive Without an ELD
How to Pursue a Wrongful Termination Claim Against UPS
Most UPS drivers and warehouse workers are Teamsters, so the first step for a unionized employee is usually the grievance process rather than a lawsuit. Teamsters contracts generally require that any discharge be supported by just cause, and disputes move through a multi-step grievance procedure that ends in binding arbitration. Courts rarely disturb arbitration outcomes outside narrow circumstances, such as fraud or a union’s failure to fairly represent its member.19Teamsters. Grievance Procedure Guide
Filing a grievance does not necessarily prevent you from pursuing a separate legal remedy. Claims under federal and state anti-discrimination statutes exist outside the collective bargaining agreement.
- For claims under Title VII, the ADA, or the Age Discrimination in Employment Act, you must usually file a charge with the EEOC (or a state equivalent) within 180 or 300 days of the adverse action. If the agency does not resolve the matter, it issues a right-to-sue letter, which is required before filing in court.20USA.gov. Wrongful Termination
- For truck-safety whistleblower claims, the filing goes to OSHA under the STAA, with a 180-day deadline.17Whistleblowers.gov. Surface Transportation Assistance Act
Missing those deadlines can bar the claim entirely, which is why many workers consult an employment lawyer well before the grievance process concludes.
What UPS’s Litigation Record Suggests
UPS consistently contests liability and has had notable post-trial success reducing or eliminating large awards. Gratton’s $237.6 million verdict was vacated. Marlo’s $16 million in punitive damages was cut to $6.6 million before being affirmed on appeal. Workers have still won significant recoveries, injunctive relief, and reinstatement — but the headline jury number is rarely what the plaintiff ultimately collects. Discrimination cases, especially those pursued through the EEOC, have produced policy changes affecting employees nationwide, from the religious accommodation overhaul to the end of UPS’s automatic 12-month leave termination rule.
If you believe UPS fired you unlawfully, the fastest useful steps are to preserve your documentation (grievance paperwork, medical restrictions, emails, discipline records), identify whether your claim involves discrimination, retaliation, or driver safety, and get the right filing in front of the right agency inside its deadline. The forum you pick first often shapes what remedies you can still reach later.