New Jersey Files Lawsuit Against Amazon Over Alleged Wage Violations of Delivery Drivers
New Jersey sued Amazon for misclassifying Flex delivery drivers as independent contractors instead than employees, violating state labor laws. Officials say this misrepresentation has cost thousands of drivers fair compensation and crucial employment benefits, igniting a court battle between the state and a global corporation.
The New Jersey Attorney General’s Office filed a complaint in Essex County Superior Court alleging that Amazon’s Flex program, in which drivers deliver items using their own vehicles, benefits the firm above workers. The lawsuit alleges that these drivers work more than 40 hours per week without overtime, paid sick leave, or other state-mandated worker safeguards. Authorities say Amazon’s categorization of drivers as independent contractors has allowed it to avoid paying into state funds like the Unemployment Compensation Fund and the State Disability Benefits Fund.
Amazon misrepresents Flex as a “flexible earning opportunity” according to Attorney General Matthew Platkin. He claimed the corporation employs this approach to shift financial burdens to drivers and maximize shareholder profits. Platkin stressed that New Jersey law compels all companies, whatever of size, to classify workers and provide them with full state and labor protections.
Labor and Workforce Development welcomed the complaint, stating Amazon should be held accountable for chronic exploitation. Commissioner Robert Asaro-Angelo said misclassifying workers damages state programs financed by companies and taxpayers and that Flex drivers deserve benefits and fair pay.
Amazon failed to pay unemployment benefits for numerous Flex drivers, according to a 2020 audit, the state found. After analyzing earnings data from 900 drivers, investigators found that some were working up to 50 hours a week without pay. These drivers did not receive minimum wage protections, overtime compensation, or paid leave benefits necessary for full-time New Jersey workers.
Amazon adamantly denies the charges. The business stated the Flex program provides drivers flexibility in when and where they work, making it appealing to those seeking flexible hours. According to an Amazon spokeswoman, the complaint “is wrong on the facts and the law” and misrepresents Flex. Amazon claims that its delivery partners are independent contractors who like the program’s flexibility, including the option to take breaks and still get paid the guaranteed minimum for each delivery block.
Amazon confronts increased regulatory scrutiny and many nationwide legal challenges, making the action timely. In another federal consumer protection complaint, the business settled for $2.5 billion last month. The latest New Jersey lawsuit adds to Amazon’s labor abuses scandal.
State officials say labor misclassification goes beyond Amazon. Over $329 million in 2021 was lost to employers misclassifying workers, reducing unemployment, Medicare, and income tax contributions in New Jersey, according to The Century Foundation. Since 2020, the state has prioritized worker categorization law enforcement, fining violators millions.
The action is crucial for hundreds of New Jersey drivers seeking equitable compensation and work recognition. This decision might affect how gig economy workers are treated in the state and nationwide, especially as the holiday season approaches and Amazon relies significantly on delivery workers.
Sources
New Jersey Attorney General’s Office
New Jersey Department of Labor and Workforce Development
The Century Foundation
Amazon company statement
