Amazon sued over status of delivery drivers

Three drivers for an Amazon delivery service are suing the company, saying they had been illegally classified as independent contractors.

This week’s lawsuit makes the retail powerhouse the latest to be drawn into a legal dispute over the status of workers in the so-called on-demand economy, which consists of companies like Uber, Lyft and Postmates.

{mosads}The drivers allege that they have been illegally designated as contractors, rather than employees who are more likely to receive certain benefits and protections.

“Although classified as independent contractors, these delivery drivers are actually employees,” the drivers said in their lawsuit, filed Tuesday in federal court and first reported late Wednesday by The Seattle Times.

“However, based on its classification of them as independent contractors, Amazon requires its drivers to pay for many of the expenses necessary to perform their job, including expenses for their vehicles, gas, phone and data plan.”

The lawsuit argues that training and on-the-job guidance provided by Amazon bolster the case that the drivers are employees, not contractors. The distinction hinges on the amount of control a company has over its workers.

The case is being brought by three drivers for Amazon’s Flex service, according to The Wall Street Journal, who are asking the court to grant class action status. The Amazon service lets workers take on assignments via a smartphone application. 

“With Amazon Flex, anyone can earn up to $25 per hour by delivering packages when and where they want,” Amazon spokesperson Jill Kerr said in a statement. “We launched the program last year and feedback from Flex drivers has been very positive — they really enjoy being their own boss.”

The lawsuit was filed in part by Shannon-Liss Riordan, an attorney who has brought labor classification cases against Uber and Lyft — two companies that have built their ride-hail networks on a workforce of independent contractors.

Those suits remain unresolved. A judge earlier this year rejected Uber’s settlement in the case, which could have been valued as highly as $100 million. Lyft’s proposed settlement has faced the same scrutiny.

– Updated at 1:56 p.m.