A total of 15,867 Amazon Flex drivers across three states have filed arbitration with the American Arbitration Association (AAA) this week, alleging Amazon had misclassified their job roles as independent contractors rather than employees, resulting in underpaid and lost wages.
Background
Amazon Flex launched in 2015 as an option for gig workers to use their own vehicles to deliver small packages with the company. Drivers around the U.S. have sued Amazon on several occasions since then, alleging their job roles were misclassified.
In March, Wisconsin’s Supreme Court affirmed that Flex drivers were employees, not independent contractors. FreightWaves Reporter John Kingston wrote in his article that a court in Waukesha County had ruled in favor of Amazon, which argued that its Flex drivers were independent contractors under state regulations. The Court of Appeals for Wisconsin reversed that lower court ruling and held the drivers were employees under state law.
Arbitration claims filed in Calif., Mass., Ill.
Attorneys Steven Tindall with Gibbs Law Group LLP and Joseph Sellers with Cohen Milstein Sellers & Toll PLLC are leading the recent arbitration. Gibbs Law Group has published a website detailing the claims against Amazon.
An infographic on the website alleges that Amazon may owe Flex drivers for failing to pay a minimum wage for all hours worked, expenses on gas and cellphone use, overtime rates for those working more than 40 hours per week and missed meals and rest breaks.
The two firms filed 15,867 arbitration claims from drivers in California, Massachusetts and Illinois with AAA on Tuesday. Added with 453 previously filed claims, this totals 16,320 claims. Tindall told FreightWaves in an email that the firms are still accepting arbitration claims for people who drove for Amazon Flex in those three states, depending on some criteria including when they drove and what state they are in.
“We’ve litigated a total of 9 through to final arbitration hearing,” Tindall said.
Tindall said that there is not a generally applicable deadline to file arbitration, but it depends on individual circumstances. There are also statutes of limitations for the claims that may apply, depending on when drivers drove and stopped driving for Amazon Flex. When asked what happens next, now that the claims are filed, he said that it’s still early days in the process.
“We suspect that the next step will be to work with AAA and Amazon’s counsel to determine a plan to litigate the filed claims,” Tindall said.
Should a settlement be reached, those participating in the arbitration will be paid depending on the individual circumstances of each driver and the state in which they drove. Tindall said that different states have different claims, but in general, the longer that someone drove and the more delivery blocks that they delivered, the higher the potential damages. Although he did not say a specific amount, the Gibbs Law Group website says that they have had clients awarded thousands of dollars in previous arbitration cases.
While similar to litigation, arbitration does not involve a court decision and relies on both parties and a mediator to reach a settlement agreement. If a settlement agreement isn’t reached, Tindall said that the firms will litigate the claims on behalf of their clients.
Amazon responds
FreightWaves reached out to Amazon for comment on the ongoing arbitration.
“The Amazon Flex program gives individuals the opportunity to set their own schedule and be their own boss, while earning competitive pay,” Branden Baribeau, Amazon’s media spokesperson, told FreightWaves in an emailed statement. “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.”
Baribeau noted that Amazon Flex delivery partners sign up for delivery blocks that fit their schedule and are able to work when they want to and the vast majority of Amazon Flex delivery partners finish their delivery blocks early
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