More than 15,000 Amazon contract drivers have filed arbitration claims against the company, arguing that they should be classified as employees instead of independent contractors. This would entitle them to minimum wage, overtime rights, and other protections. The gig economy, which includes popular apps like Lyft, Uber, Doordash, and Instacart, has seen a rise in workers advocating for employee status and benefits.
The debate over the classification of contract workers versus employees has been a contentious issue, highlighted by laws such as California’s Prop 22, which allows drivers to be treated as independent contractors with certain benefits. Amazon Flex, launched in 2015, allows independent contractors to deliver packages for the company. The current claims seek compensation for unpaid wages, overtime, and expenses like mileage and cell phone usage incurred by the drivers.
Lawyers handling the case stated that about 450 claims had been previously filed with the American Arbitration Association. Drivers from California, Massachusetts, and Illinois have filed claims based on their states’ clear laws regarding employee misclassification and expense reimbursement. Attorneys Steven Tindall and Joseph Sellers have been collecting claims over the years from Flex drivers seeking fair compensation.
Amazon defends its Flex program, stating that it offers individuals the opportunity to set their own schedule and earn competitive pay. The company emphasizes the flexibility of the program and the positive feedback from many drivers. Amazon states that most drivers earn between $18 to $25 an hour. However, Tindall and Sellers claim that drivers are only paid for a pre-determined “block” of time, regardless of actual hours worked.
Tindall explained that the drivers opted for individual arbitration claims instead of a class action lawsuit due to an agreement that prohibits class action by drivers. This limitation in arbitration leaves drivers with limited options for seeking justice, leading them to file almost 16,000 individual arbitration actions simultaneously. The ongoing debate over worker classification and rights in the gig economy continues to be a contentious issue for companies like Amazon and their contract workers.
Overall, the increasing number of arbitration claims by Amazon contract drivers underscores the ongoing debate over the classification of workers in the gig economy and the rights and protections they are entitled to. The case highlights the challenges faced by independent contractors who argue for employee status and better benefits. As gig work becomes more prevalent, the issue of worker classification and rights will continue to be a key point of contention between companies and their contract workers.
