New Jersey sues Amazon over treatment of delivery drivers

Attorney General Jennifer Davenport filed an antitrust lawsuit against Amazon today, alleging the company used its dominance over delivery contractors to suppress driver wages, discourage union organizing and limit competition for their labor.

The lawsuit, filed in U.S. District Court in New Jersey, targets Amazon, Amazon.com Services and Amazon Logistics. Davenport’s office said it is the first monopsony conduct complaint brought by a state, referring to a market dominated by a powerful buyer rather than a seller.

“Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions thanks to its overwhelming power in the labor market,” Davenport stated.

Amazon launched its Delivery Service Partner program in 2018, describing participating delivery companies as independent businesses.  The state alleges that Amazon effectively controls those contractors by establishing operating requirements, monitoring drivers, allocating routes and restricting contractors from hiring one another’s employees.

The complaint says those restrictions amount to illegal “no-poach” agreements that prevent drivers from finding better-paying jobs within Amazon’s delivery network.

State officials also allege that Amazon used artificial intelligence, vehicle cameras and other technology to closely monitor drivers and retaliated against organizing efforts.  The lawsuit cites one incident in which Amazon allegedly deployed drones near a facility where drivers were organizing and another in which it ended a contractor’s work at a facility, causing the operation to close and drivers to lose their jobs.

Drivers have reported urinating in bottles to meet Amazon’s delivery requirements, according to the complaint, which also alleges that they experience lower compensation and more lost-time injuries because of Amazon’s practices.

The state is seeking permanent court-ordered changes and triple damages for compensation drivers allegedly lost because of the company’s conduct.

New Jersey has several other pending cases against Amazon, including lawsuits involving marketplace competition, the treatment of pregnant and disabled employees and the alleged misclassification of Flex delivery drivers as independent contractors.

A judge denied Amazon’s motion to dismiss the civil rights case on July 31.