Amazon Sued by Thousands of Delivery Drivers Over Unpaid Wages, Contractor Status

By Madz Dizon

Jun 12, 2024 03:19 AM EDT

Amazon Sued by Thousands of Delivery Drivers Over Unpaid Wages, Contractor Status
The new 620,000-square-foot Amazon facility in Johnston County, North Carolina, will provide employment for over 1,000 individuals in the area.
(Photo : SEBASTIEN BOZON/AFP via Getty Images)

On Tuesday (June 11), thousands of delivery drivers lodged legal claims against Amazon, claiming that the company's categorization of them as independent contractors rather than employees has resulted in unpaid wages and various financial setbacks.

Amazon Flex Drivers File 15,860 Arbitration Claims Over Work Conditions

Two law firms leading the effort stated that approximately 15,860 Amazon Flex drivers have filed arbitration claims with the American Arbitration Association. Currently, 453 similar-in-nature cases are being litigated, ABC News reported.

According to one driver's arbitration claims, Flex drivers at Amazon do not receive 10-minute rest breaks if their shift exceeds 3.5 hours.

There have been allegations made against Amazon regarding the lack of 30-minute meal breaks for drivers working more than five hours a day. 

Additionally, it has been claimed that Amazon does not provide itemized wage statements as required by California law.

The arbitration claims submitted on Tuesday were filed by drivers in California, Illinois, and Massachusetts. 

These states have regulations in place that restrict the level of control that companies can have over independent contractors. 

The claims, gathered over a period of four years by attorneys Joseph Sellers and Steven Tindall, argue that the drivers should be categorized as Amazon employees rather than independent contractors, in accordance with the existing laws in the three states.

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Flex Drivers Push for Overtime Pay and Expense Reimbursements

Based on the lawyers, the proposed change would enable Flex drivers to receive the wages they are owed. 

Currently, Amazon only compensates them for a set number of hours, regardless of the actual time it takes to complete deliveries. 

In addition, Flex drivers would be eligible for overtime pay if they exceed 40 hours per week, and they would also be able to receive reimbursements for work-related expenses like gas costs and vehicle wear and tear.

As stated by Tindall, gas and other vehicle costs pose a significant financial burden for our clients. 

According to the source, one individual who was involved in the claims worked tirelessly for Amazon, delivering packages during a busy holiday season, but unfortunately, they were never compensated for their overtime hours.

Tindall and Sellers stated that Amazon only compensates the drivers for a predetermined "block" of time. When a Flex driver books a three-hour block on the app, their payment is limited to only those three hours, regardless of any additional time spent on deliveries.

Tindall informed CNN that the workers opted to file independent arbitration claims instead of pursuing a class action lawsuit due to the requirement for drivers to sign an agreement that prohibits class action.

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