Delivery Drivers Sue Amazon, Alleging Violation of Labor Laws
October 05 2016 - 9:50PM
Dow Jones News
Amazon.com Inc. is being sued by three drivers, making the
online retail giant the latest company to face legal action over
the use of independent contractors in its delivery operation.
The proposed class-action lawsuit, filed Tuesday in federal
court in Seattle by drivers for Amazon.com and Amazon Logistics
Inc., alleges the company violated federal labor law by classifying
them as contractors rather than employees. The drivers are seeking
back wages, overtime pay and compensation for fuel, car maintenance
and other expenses.
The lawsuit comes as Amazon is laying the groundwork for its own
shipping business, which its executives have said will add delivery
capacity, particularly during the peak holiday season. Amazon
currently delivers its own packages from roughly 70 facilities,
mostly built in the past two years, in 21 states.
The drivers named in the lawsuit have all driven for a program
called Amazon Flex, a smartphone app launched last year, through
which drivers choose the shifts they want to work and schedule
their own pickups. The program has expanded to nearly 30
metropolitan areas.
The question of how to classify so-called "gig economy" workers
has been roiling many of Silicon Valley's on-demand services firms
such as Uber Technologies Inc. and Postmates Inc., which say their
workers tend to prefer to be independent contractors, because it
allows for a more flexible schedule.
Earlier this year, a judge rejected a $100 million settlement
between Uber and its drivers. In a separate misclassification case,
FedEx Corp. settled with drivers for $240 million earlier this
year.
The Amazon drivers are represented by Shannon Liss-Riordan, a
Boston attorney who also brought the suit against Uber. In an
interview, she called the use of contractors "a scheme…to try to
avoid having to comply with wage laws."
"They think that if they use technology that somehow exempts
them," she said.
An Amazon spokeswoman said in an email statement that "feedback
from Flex drivers has been very positive—they really enjoy being
their own boss."
Write to Erica E. Phillips at erica.phillips@wsj.com
(END) Dow Jones Newswires
October 05, 2016 21:35 ET (01:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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