Delivery Drivers File Wage Claims Against Amazon (ABC News)

Delivery Drivers File Wage Claims Against Amazon

Thursday, June 13th, 2024 Insurance Industry Legislation & Regulation Litigation Workers' Compensation

On Tuesday, approximately 15,860 Amazon Flex drivers submitted arbitration claims against Amazon, alleging misclassification as independent contractors, which has resulted in unpaid wages and other financial losses. The claims, collected over four years by attorneys Joseph Sellers and Steven Tindall, argue that under the laws of California, Illinois, and Massachusetts, these drivers should be classified as employees.

Amazon’s Flex program, initiated in 2015, allows drivers to deliver packages using their own vehicles and the Amazon Flex app. Promoted as a flexible part-time job, drivers can earn between $18 and $25 per hour. However, the payment structure does not account for the actual time taken to complete deliveries, leading to potential unpaid wages. Furthermore, drivers are not compensated for overtime or reimbursed for work-related expenses such as gas and vehicle wear and tear.

The legal action aims to reclassify Flex drivers as employees, enabling them to claim unpaid wages, overtime pay, and expense reimbursements. Tindall highlighted the significant expenses borne by drivers, mentioning one client who worked seven days a week during a holiday period without receiving overtime pay.

Amazon spokesperson Branden Baribeau defended the Flex program, emphasizing its flexibility and competitive pay. Despite the company’s stance, Tindall and Sellers have had success in seven of eight arbitration claims against Amazon, with drivers awarded an average of $9,000 in damages.

Amazon’s model, relying on independent contractors and third-party businesses, is under increasing scrutiny. Recently, a bipartisan group of U.S. senators requested more information on Amazon’s Delivery Service Partners program. Additionally, the Wisconsin Supreme Court upheld a ruling classifying Flex drivers as employees, potentially entitling them to unemployment benefits. The Teamsters union has also filed a complaint with the National Labor Relations Board challenging Amazon’s driver classification.


External References & Further Reading
https://abcnews.go.com/US/wireStory/thousands-drivers-file-arbitration-claims-amazon-unpaid-wages-111031942
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