Recently, 15,867 Amazon Flex drivers filed for arbitration with the American Arbitration Association (AAA), accusing Amazon of misclassifying their job roles as independent contractors rather than employees, resulting in lower wages and other losses. Amazon Flex, launched in 2015, offers gig workers the opportunity to deliver small packages using their own vehicles. However, drivers across the U.S. have repeatedly sued Amazon, claiming misclassification of their roles.
In March, the Wisconsin Supreme Court ruled that Flex drivers are employees, not independent contractors, providing strong legal support for the drivers' claims.
Lawyers Steven Tindall of Gibbs Law Group LLP and Joseph Sellers of Cohen Milstein Sellers & Toll PLLC are handling the recent arbitration case. In June, they submitted 15,867 arbitration claims from drivers in California, Massachusetts, and Illinois to the AAA. Combined with 453 previously filed claims, the total now stands at 16,320.
The attorneys stated that if a settlement is reached, participating drivers will be compensated based on their individual circumstances and the state they drove in. Different states have different claim requirements, but generally, the longer a person drove and the more goods they delivered, the greater the potential damages. The Gibbs Law Group LLP website indicates that their clients have received thousands of dollars in previous arbitration cases.
Amazon spokesperson Branden Baribeau said in an email statement: "The Amazon Flex program gives individuals the opportunity to set their own schedules, be their own boss, and earn competitive pay. We hear from the vast majority of Amazon Flex delivery partners that they enjoy the flexibility of the program and we are proud of the work they do every day on behalf of customers."
However, drivers argued in arbitration that Amazon fails to provide legally required 10-minute rest breaks and 30-minute meal breaks, which violates California labor law. Additionally, they complained that Amazon does not pay the minimum wage for all working hours, reimburse expenses for gas and phone usage, or pay overtime for working over 40 hours a week.
If a settlement cannot be reached, the companies will represent the drivers in court. This case could have significant implications for the gig economy, as a court ruling that drivers should be classified as employees could increase operating costs for companies that rely on independent contractors, such as Uber and DoorDash.
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