TRENTON — New Jersey’s Attorney General, Matthew J. Platkin, along with Labor Commissioner Robert Asaro-Angelo, has initiated legal action against Amazon. They claim that the tech behemoth has unlawfully categorized its Flex delivery drivers as independent contractors, thereby denying them wages, benefits, and essential labor protections.
The lawsuit, lodged in the Superior Court of Essex County, asserts that Amazon’s classification of Flex drivers breaches several state labor regulations and has resulted in significant financial losses for both the workers and public trust funds, amounting to millions of dollars annually.
“Flexibility” at Workers’ Expense
Amazon’s Flex program invites people to use their own cars for package delivery. Although it is promoted as a “flexible” method to make money, state officials contend that this setup shifts the responsibility of business costs—such as fuel, insurance, tolls, and vehicle upkeep—onto the drivers, while also depriving them of the protections that employees are entitled to.
Despite being labeled independent contractors, drivers are closely monitored by Amazon and have little control over how they work. The state’s complaint outlines how drivers:
- Must pass background checks and training
- Use Amazon’s app for routes and delivery instructions
- Follow strict schedules and return undelivered packages
- Are subject to Amazon’s performance tracking system
- Cannot negotiate pay and can be removed from the program without notice
Attorney General Platkin called the practice “an exploitation of workers,” saying:
“Let’s not make any mistake about this: when a trillion-dollar company says it’s providing you with ‘a flexible way of earning extra money,’ it is not doing it for your benefit. Amazon is enriching itself while violating the rights of workers and shifting the financial burden onto them.”
Key Allegations
The lawsuit outlines multiple violations of New Jersey labor laws, including:
- Minimum wage and overtime violations
- Unlawful wage deductions and misclassification
- Failure to provide earned sick leave and job-protected family leave
- Failure to contribute to state unemployment and disability insurance funds
Several personal examples illustrate the toll on workers:
- A driver working 40+ hours a week never received overtime pay
- Another lost income while recovering from an injury because no sick leave was available
- A third often paid out-of-pocket for tolls, bringing earnings below the state’s minimum wage
Legal Standards and the ABC Test
Under New Jersey law, most workers are presumed to be employees unless employers pass the stringent ABC Test, which includes proving that:
- The worker is free from the company’s control
- The work is outside the usual business of the company
- The worker operates an independent business
The state contends Amazon fails all three parts of this test.
What New Jersey Is Seeking
The lawsuit asks for:
- An end to Amazon’s alleged unlawful practices
- Back pay and damages for affected workers
- Fines and penalties
- Recovery of unpaid funds to New Jersey’s Unemployment Compensation and Disability Insurance systems
- Attorneys’ fees and enforcement costs
Broader Fight Against Worker Misclassification
New Jersey has taken a strong stance on enforcing labor laws during the Murphy administration. This case comes after previous settlements with Uber, Lyft, and other firms that were found to have misclassified their workers. Since 2020, the state has imposed more than $11.2 million in penalties for misclassification.
As reported by the Century Foundation, New Jersey taxpayers suffered a loss exceeding $329 million in 2021 due to worker misclassification, highlighting the wider economic consequences.
“We will not allow Amazon to expand its empire by exploiting New Jersey workers and our state’s unemployment trust funds,” said Labor Commissioner Asaro-Angelo.
