Over 15,000 Amazon Contract Drivers Seek Compensation for Overtime and Unpaid Wages

More than 15,000 Amazon contract drivers filed arbitration claims against the tech giant, alleging that they were misclassified as independent contractors rather than employees, thereby denying them minimum wage and overtime rights.

This legal action highlights a significant issue within the growing gig economy, where millions of workers use platforms like Lyft, Uber, DoorDash, and Instacart. Many gig workers argue that their roles qualify them as employees entitled to greater benefits and protections, a debate intensified by laws such as California’s Prop 22. Prop 22 allows ride-hailing and delivery drivers to be treated as independent contractors while providing some benefits, including a minimum earnings guarantee.

Amazon Flex, launched in 2015, enables independent contractors to deliver Amazon packages, including Amazon Fresh grocery orders and same-day deliveries from warehouses. As independent contractors, Flex drivers are now seeking compensation for unpaid wages, overtime, and reimbursement for expenses such as mileage and cell phone usage.

Previously, around 450 claims had been filed with the American Arbitration Association, according to the lawyers handling the case. Steven Tindall, one of the attorneys, explained that the latest claims were filed by drivers from California, Massachusetts, and Illinois, where laws on employee misclassification are stringent and allow workers to seek expense reimbursement from employers.

In response to the claims, Amazon emphasized the benefits of the Flex program. “Flex gives individuals the opportunity to set their own schedule and be their own boss while earning competitive pay,” Amazon 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.” The company states on its website that most Flex drivers earn between $18 to $25 an hour.

However, attorneys Tindall and Joseph Sellers contend that Amazon only pays drivers for a predetermined “block” of time. If a driver books a three-hour block but the deliveries take longer, they still only receive pay for three hours.

Given that drivers must sign an agreement that prohibits class action lawsuits, they are left with filing nearly 16,000 individual arbitration claims. “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,” Tindall stated.

This move underscores the ongoing struggle for fair labor practices within the gig economy and could have significant implications for how gig workers are classified and compensated in the future.