More than 15,000 Amazon contract drivers filed a suit against the company seeking overtime compensation and unpaid wages, alleging that they have been classified by the e-commerce giant as independent contractors.
In 2015, Amazon Flex was launched, which allowed independent contractors to deliver Amazon packages. These drivers allow for same-day deliveries for Amazon Fresh groceries from the company warehouse.
Considering that the Flex drivers are classified as independent contractors, the claims filed against Amazon are asking for unpaid wages, overtime, including reimbursement for cell phone usage and gas mileage.
According to CNN, the lawyers for the case revealed that approximately 450 claims were previously filed with the American Arbitration Association.
Attorney Steven Tindall told CNN that drivers from California, Illinois and Massachusetts filed such claims since laws in those states concerning misclassification are clear, and they allow workers to file claims to seek reimbursement for expenses. Aside from Tindall, another attorney, Joseph Sellers, has been collecting claims.
Amazon, in a statement concerning Flex, said that the business model allows individuals to set their own schedules and become their own boss, all the while earning pay that is competitive.
Fortune noted that according to Amazon, most of the drivers earn between $18 to $25 per hour, though the amount that they receive also depend on other factors like their location, and the length of time it would take to complete the deliveries.
"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," Amazon said.
Tindall and Sellers said that Amazon pays drivers by "block." For instance, if a driver would book a 3-hour block on the app, then Amazon would be paying the driver for the three hours only. However, it would not be considering deliveries that take more time.
According to Tindall and Sellers, seven of the eight arbitration claims they filed against Amazon which reached trial have succeeded and the drivers in those cases were awarded damages of about $9,000 on the average.
Last week, a group comprised of more than 30 U.S. senators sent a letter to Andy Jassy, Amazon's CEO, inquiring about the relationship of Amazon with thousands of independent businesses that deliver millions of items each day as part of the Delivery Service Partners program of the company.
