Amazon faces legal action from thousands of delivery drivers who claim that the company classifying them as independent contractors rather than employees has led to unpaid wages and financial hardships.
Amazon’s Flex program enrolls drivers to use their personal vehicles and a specialized app for package deliveries.
Established in 2015, the company marketed the initiative as a flexible, part-time earning opportunity, with reported hourly rates ranging from $18 to $25. However, actual earnings may vary depending on factors such as location and delivery duration.
According to the two law firms overseeing the process, about 15,860 Amazon Flex drivers have filed arbitration claims with the American Arbitration Association. There are already 453 similar cases in litigation.
Drivers from California, Illinois, and Massachusetts submitted these claims, citing regulations in these states that curtail companies’ control over independent contractors.
Lawyers Joseph Sellers and Steven Tindall have gathered these claims over a period of four years.
They argue that classifying Flex drivers as Amazon employees rather than independent contractors is essential. This reclassification would enable them to claim unpaid wages for hours worked, as they assert that Amazon compensates them just for a predetermined number of hours.
Additionally, Flex drivers would receive overtime pay for working more than 40 hours weekly and reimbursement for work-related expenses including gas and vehicle maintenance.
Amazon’s Flex program offers “individuals the opportunity to set their own schedule and be their own boss, while earning competitive pay,” company spokesman Brandon Baribeau said in a statement.
“We hear from most of the Amazon Flex delivery partners that they love the flexibility of the program, and we’re proud of the work they do on behalf of customers every day,” Baribeau added.
Tindall and Sellers have won seven out of eight arbitration claims against Amazon, with the represented drivers receiving an average of $9,000 in damages.
Amazon’s strategy of utilizing independent contractors and third-party businesses to avoid unionization is being challenged as the company faces legal scrutiny.
Last week, more than 30 bipartisan senators sent a letter to Amazon CEO Andy Jassy, asking for details on the company’s relationship with independent businesses in its Delivery Service Partners program.
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In March, the Wisconsin Supreme Court upheld a ruling declaring Flex drivers as employees, making them eligible for the state’s unemployment insurance system and jobless pay if laid off.
Last year, the Teamsters union, which seeks to unionize Amazon’s drivers, also filed a complaint with the National Labor Relations Board contesting the company’s classification of certain drivers.