Over 15,000 Amazon Delivery Workers Seek Compensation for Overtime and Unpaid Wages

On Tuesday, over 15,000 Amazon delivery drivers launched arbitration proceedings against the e-commerce giant, claiming they were misclassified as independent contractors rather than employees entitled to minimum wage and overtime benefits.

Millions of people across the U.S. take part in the “gig economy” as freelancers via delivery and ride apps such as DoorDash, Lyft, Instacart, and Uber. With the rise in gig work’s widespread adoption, numerous workers are now asserting that they should be recognized as employees rather than contractors, and in turn should be entitled to the benefits and legal protections.

The classification of contract workers versus employees has sparked a heated debate, particularly in legislation like California’s Prop 22. Under this legislation, ride-hailing and delivery drivers are granted the status of independent contractors, with accompanying benefits including guaranteed minimum earnings.

Introduced in 2015, Amazon Flex offers an opportunity for independent contractors to deliver Amazon parcels. These contractors cater to Amazon Fresh grocery deliveries or same-day deliveries from the company’s warehouse bases. Given their classification as independent contractors, these workers seek remuneration for unaccounted wages and overtime, as well as compensation for expenses like using their phones and mileage covered for the jobs.

According to statements from legal representatives, approximately 450 similar claims had been lodged previously with the American Arbitration Association.

In California, Massachusetts, and Illinois, drivers initiated claims because of the clear legal stance on employee misclassification, as emphasized as “very clear” by attorney Steven Tindall. Tindall added that these states also allow workers to seek expense reimbursement from their employers.

For many years, attorneys Tindall and Joseph Sellers have been gathering claims, stated Tindall.

Amazon said in a statement that Flex “gives individuals the opportunity to set their own schedule and be their own boss, while earning competitive pay. 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.” 

According to the company’s website, most drivers earn between $18 and $25 an hour.

Tindall said in a statement, “Arbitration, unfortunately, limits the drivers’ pursuit of justice. So, we’re left with little choice but to file almost 16,000 individual arbitration actions at once.” He explained that the workers each filed arbitration claims rather than a class action lawsuit because “drivers have to sign an agreement that forbids class action.”