Thousands of delivery workers have filed suit against Amazon on Tuesday, arguing that the company’s classification of those affected as independent contractors rather than employees had led to unpaid wages and other financial losses.
Two law firms leading the effort said that about 15,860 Amazon Flex drivers have filed arbitration awards with the American Arbitration Association, where 453 similar cases are already pending.
Amazon’s Flex program, founded in 2015, requires drivers to Deliver packages with their own cars and a special app.
The company presents the work as a flexible, part-time opportunity that allows people to earn extra income during the hours they choose. Most drivers earn $18 to $25 an hour, according to Amazon, although the amount of their pay can depend on other factors, such as their Location and how long it takes to complete deliveries.
The arbitration claims filed on Tuesday were filed by drivers in CaliforniaIllinois and Massachusetts all have rules that Possibility of control Companies can exercise over independent contractorsThe claims, compiled over a four-year period by attorneys Joseph Sellers and Steven Tindall, say that under current law in the three states, the drivers should be classified as Amazon employees rather than independent contractors.
This change would allow Flex drivers to claim unpaid wages because Amazon only pays them for a predetermined number of hours, regardless of how long the deliveries take, the lawyers said. Flex drivers could also be paid overtime if they work more than 40 hours per week and be reimbursed for work-related expenses such as gas costs and vehicle wear and tear.
Gas and other vehicle costs are “a huge expense for our customers,” Tindall said in an interview. He also said that one customer named in the lawsuits worked seven days a week during a holiday period making deliveries for Amazon and was never paid overtime.
In a prepared statement, Amazon spokesman Branden Baribeau touted the benefits of the Flex program, saying it gives “individuals the opportunity to set their own work hours and be their own boss while earning a competitive salary.”
“We hear from most Amazon Flex delivery partners that they love the flexibility of the program, and we are proud of the work they do on behalf of customers every day,” said Baribeau.
Tindall and Sellers say they have been successful in seven of the eight arbitration cases against Amazon that they have taken to court. The drivers they represented in those cases have been awarded an average of $9,000 in damages.
Amazon’s business model for its driver workforce – consisting of independent contractors and Third party companies which enable the company to Union formation – is being examined and challenged from various sides.
A bipartisan group of more than 30 U.S. senators sent a letter to Amazon CEO Andy Jassy last week asking for more information about the company’s relationship with the thousands of independent businesses that are part of Amazon’s Delivery Service Partners Program.
In March Supreme Court of Wisconsin upheld a lower court ruling that declared Flex drivers as employees – a decision that would enable them to participate in the state unemployment insurance system and, in the event of their dismissal, to claim unemployment benefits.
The Teamsters Unionwhich tries to organize Amazon drivers, also filed a complaint with the National Labor Relations Board last year about the company’s classification of some of its drivers.