Over 15,000 Amazon contract drivers file claims for unpaid wages and overtime

Over 15,000 Amazon contract drivers filed arbitration claims against the company on Tuesday, accusing Amazon of misclassifying them as independent contractors instead of employees entitled to minimum wage and overtime benefits.

Millions of Americans are involved in the gig economy, working through delivery and ride-share apps like Lyft, Uber, Doordash, and Instacart. As gig work’s popularity has grown, many workers argue that they should be considered employees, not just contractors, deserving more benefits and protections.

The debate over the classification and rights of contract workers versus employees has been intense, as seen in laws like California’s Prop 22. This law allows ride-hailing and delivery drivers to be treated as independent contractors but with some additional benefits, such as a guaranteed minimum earnings.

Amazon Flex, launched in 2015, enables independent contractors to deliver Amazon packages. Flex drivers handle Amazon Fresh grocery deliveries or same-day shipments from the company’s warehouses. Classified as independent contractors, these drivers are now seeking compensation for unpaid wages, overtime, and reimbursement for expenses like mileage and cell phone use.

Lawyers representing the drivers stated that approximately 450 claims had already been filed with the American Arbitration Association.

Drivers from California, Massachusetts, and Illinois filed claims because these states have clear laws regarding employee misclassification, explained attorney Steven Tindall to CNN. These states also permit workers to seek expense reimbursement from employers, Tindall added. He and another attorney, Joseph Sellers, have been collecting claims for years, Tindall noted.

In response, Amazon stated that Flex “allows individuals 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 Amazon’s website, most drivers earn between $18 to $25 per hour.

Tindall and Sellers pointed out that Amazon only compensates drivers for a pre-determined “block” of time. If a Flex driver books a three-hour block on the app, they are paid for three hours, even if deliveries take longer.

Amazon told CNN that, based on their data, most Amazon Flex delivery partners complete their delivery blocks ahead of schedule.

Tindall mentioned to CNN that the drivers opted for individual arbitration claims instead of a class-action lawsuit because drivers sign an agreement that prohibits class actions.

“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.