Thousands of delivery drivers have filed lawsuits against Amazon on Tuesday, an allegation that the company classified them as independent contractors rather than employees led to unpaid wages and other financial losses.
The two law firms leading the effort said about 15,860 Amazon Flex drivers have filed arbitration claims with the American Arbitration Association, which already has 453 similar cases pending.
Amazon’s Flex program, founded in 2015, signs up drivers for… deliver parcels with their cars and special application.
The company markets the job as a flexible part-time opportunity that allows people to earn extra income during the hours they choose. According to Amazon, most drivers earn $18 to $25 per hour, although what they are paid can depend on other factors, such as their location and the time it takes to complete the delivery.
The arbitration claims filed Tuesday were brought by drivers. In California, Illinois and Massachusetts, all of which have rules limiting the amount of control companies can exercise over independent contractors. The lawsuits, compiled over four years by attorneys Joseph Sellers and Stephen Tindall, argue that the drivers should be classified as Amazon employees rather than independent contractors under current laws in three states.
Lawyers say the change will allow Flex drivers to collect unpaid wages because Amazon only pays them for a predetermined number of hours, regardless of how long it takes to complete the delivery. It would also allow Flex drivers to receive overtime pay if they work more than 40 hours a week and be reimbursed for work-related expenses such as gas and vehicle wear and tear.
Gas and other vehicle costs are “a huge expense for our customers,” Tindall said in an interview. He also said that one customer represented in the lawsuits worked 7 days a week making deliveries for Amazon during the holidays and was never paid overtime.
In a prepared statement, Amazon spokesman Branden Baribeau touted the benefits of the Flex program, saying it gives “individuals the opportunity to set their own schedule and be their own boss while earning competitive wages.”
“We hear from the majority of Amazon Flex delivery partners that they love the flexibility of the program and we are proud of the work they do for customers every day,” Baribeau said.
Tindall and Sellers say they have been successful so far in seven of the eight arbitration cases they have brought against Amazon. The drivers they represented in these cases were awarded an average of $9,000 in damages.
Amazon’s business model for its driving force of independent contractors and third party companies which allow the company to avoid unionization – faces scrutiny and challenges from different sides.
A bipartisan group of more than 30 U.S. senators last week sent a letter to Amazon CEO Andy Jassy asking for more information about the company’s relationships with the thousands of independent businesses that make millions of Amazon deliveries every day. Delivery service affiliate program.
In March Wisconsin Supreme Court let’s uphold a lower court decision declaring Flex drivers employees, a decision that would allow them to become part of the state’s unemployment insurance system and be eligible for unemployment benefits if they are laid off.
Drivers Unionwhich is trying to organize Amazon drivers, also filed a complaint last year with the National Labor Relations Board challenging the way the company classifies some of its drivers.