Amazon Flex & Fresh Driver Misclassification: Arbitration Info

Attorneys working with ClassAction.org believe Amazon may have violated federal and state labor laws by misclassifying Amazon Flex drivers as independent contractors instead of employees, and they’re now gathering affected workers to take legal action.

Specifically, the attorneys believe that Flex drivers may not fit the criteria to be classified as contractors—who are generally considered to be in business for themselves—given the degree of control that Amazon exercises over their job duties and because drivers perform work that is central to Amazon’s business.

Due to their contractor classification, Amazon Flex drivers may have been denied certain protections and benefits afforded to bona fide employees, including minimum wage, overtime pay and reimbursement of expenses like gas, insurance and vehicle maintenance.

The attorneys are now gathering Amazon Flex drivers to take legal action via mass arbitration.

Amazon Flex, Fresh Drivers: Employees or Contractors?

Whether a worker is an employee (who is covered by federal and state labor laws) or an independent contractor (who is self-employed) is determined by the nature of the relationship between worker and employer, not the worker’s title or the agreement they signed.

Generally, courts assess several different factors to determine whether a worker is economically dependent on their employer, i.e., an employee. These factors include whether the worker’s decisions influence profit or loss, the investments made by the worker and employer, whether the job is temporary or long-term, the degree of control that the employer has over the worker’s job, whether the work performed is central to the employer’s business, and the skill and initiative required for the job.

In this case, the attorneys believe Amazon’s degree of control over Amazon Flex drivers’ pay and how they perform their jobs—plus, the fact that they perform delivery services, a key component of Amazon’s business—could indicate that the workers are really employees.

An independent contractor misclassification could impact Amazon Flex pay because contractors are not guaranteed minimum and overtime wages under federal and state labor laws. Moreover, Amazon Flex drivers pay for gas, vehicle maintenance, insurance and other business-related expenses that are not reimbursed by Amazon like they would be for an employee.

A contractor misclassification also affects taxes as Amazon Flex drivers pay tax on their wages themselves and Amazon does not contribute to Social Security and Medicare taxes on their behalf.

Independent Contractor Misclassification Lawsuits

Many lawsuits have been filed over the alleged misclassification of employees as independent contractors, especially in the gig economy.

For instance, several lawsuits filed on behalf of delivery drivers for OnTrac, Instacart and DoorDash argued that the job of delivering packages or groceries was central to the company’s business. The cases claimed that the companies exercised “strict” control over how drivers’ work was performed and that drivers were, in reality, not in business for themselves. According to the lawsuits, drivers were owed money for minimum and overtime wages and reimbursement of business expenses—benefits they allegedly should have received had they been properly classified as employees.

Is This a Lawsuit? What Am I Signing Up For, Exactly?

You are not signing up for a lawsuit, but rather a process known as mass arbitration. This is a relatively new legal technique that, like a class action lawsuit, allows a large group of people to take action and seek compensation from a company over an alleged wrongdoing. Here is a quick explanation of mass arbitration from our blog:

“[M]ass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. The aim of a mass arbitration proceeding is to grant relief on a large scale (similar to a class action lawsuit) for those who sign up.”

Amazon’s independent contractor terms of service contain an arbitration clause requiring workers to resolve disputes via arbitration, a form of alternative dispute resolution that takes place outside of court before a neutral arbitrator, as opposed to a judge or jury. It’s for this reason that attorneys working with ClassAction.org have decided to handle this matter as a mass arbitration rather than a class action lawsuit.

How Much Does This Cost?

It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award.

If they don’t win your claim, you don’t pay.

How Much Could the Arbitration Pay?

There are no guarantees as to how much money you could get or whether your claim will be successful. However, Amazon Flex drivers who sign up for the mass arbitration may be able to recover money for their losses, including unpaid minimum and overtime wages and other denied employment benefits.

Sign Up for the Flex Driver Misclassification Arbitration

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