Attorney General Matthew J. Platkin and New Jersey Labor Commissioner Robert Asaro-Angelo have filed a lawsuit against Amazon and its Amazon Logistics delivery network, alleging that the company misclassified Flex delivery drivers as independent contractors rather than employees. The complaint claims this misclassification denied drivers wages, benefits, and other legal protections they would be entitled to as employees.
According to the lawsuit, Amazon shifted the risks and costs of doing business to Flex drivers, who use their own vehicles and cover expenses such as gas, insurance, maintenance, and tolls. The state alleges that Amazon failed to make required contributions to the Unemployment Compensation Fund and the State Disability Benefits Fund, resulting in millions of dollars in losses for New Jersey drivers and these funds each year. This situation, the lawsuit contends, also impacts other employers who must compensate for shortfalls in the state’s trust funds.
Flex drivers deliver packages for Amazon to both businesses and homes. While Amazon advertises Flex as a flexible way to earn money, the state asserts that the company exercises significant control over how drivers do their work, including setting delivery methods and monitoring performance.
Attorney General Platkin stated, “Let’s not make any mistake about this: when a trillion-dollar company says it is providing you with ‘a flexible way of earning extra money on your own schedule,’ it is not offering this opportunity for your benefit. Amazon is looking out for itself. Amazon is taking advantage of Flex drivers and enriching its bottom line by failing to obey our labor laws and offloading its business expenses for the benefit of shareholders.”
Labor Commissioner Asaro-Angelo added, “Amazon’s misclassification of Flex drivers is illegal–plain and simple. We will not allow Amazon to expand its empire by exploiting New Jersey workers and our state’s unemployment trust funds. Flex drivers deserve the dignity and respect of proper classification, ensuring they receive the benefits and rights they are entitled to. Classifying workers correctly is New Jersey law, there are no exceptions, regardless of the company size. We are bringing this action to protect New Jersey’s Flex drivers and our entire state.”
The state’s investigation began after Flex drivers applied for unemployment and temporary disability benefits. Some drivers were awarded benefits, despite Amazon not making required contributions. The lawsuit, filed in Essex County Superior Court, seeks a jury trial and highlights specific cases where drivers missed out on overtime pay, sick leave, and minimum wage protections due to their classification as independent contractors.
Under New Jersey law, most workers are presumed to be employees unless a business can meet all three parts of the “ABC Test.” The complaint outlines how Amazon requires background checks and training, controls delivery assignments through its app, monitors driver performance, and can terminate drivers without notice. Drivers are not able to negotiate pay and must follow Amazon’s delivery instructions.
The lawsuit alleges several violations, including failure to pay minimum wage and overtime, unlawful deductions, lack of sick leave, and failure to contribute to state benefit funds. It seeks to halt Amazon’s practices, recover unpaid wages and contributions, and impose fines and penalties.
New Jersey has prioritized addressing worker misclassification, with previous actions against companies in ridesharing, trucking, and construction. Since 2020, new state laws have allowed NJDOL to assess penalties on companies found to have misclassified workers. To date, $11.2 million has been assessed for more than 13,500 workers.
A 2021 estimate from The Century Foundation found that New Jersey taxpayers lost over $329 million due to worker misclassification, including lost contributions to unemployment insurance, Social Security, Medicare, and income taxes.
The New Jersey Department of Labor is represented in this matter by the Office of the Attorney General’s Division of Law.
