New Jersey sues Amazon over alleged misclassification of Flex drivers as independent contractors
TRENTON, N.J. — Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo announced Monday that the state has filed a lawsuit against Amazon, alleging the company illegally misclassified its Flex delivery drivers as independent contractors rather than employees.
The complaint, filed in the Superior Court of Essex County, Law Division, accuses Amazon and its Amazon Logistics delivery network of unlawfully depriving drivers of wages, benefits, and legal protections afforded to employees under state law. The state also 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 annual losses to both Flex drivers and the state’s trust funds.
“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,” said Attorney General Platkin. “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.”
According to the state, Amazon’s Flex program hires drivers to deliver packages using their own vehicles while covering their own expenses, including gas, maintenance, and insurance. Although Amazon promotes the program as flexible, officials said the company exerts significant control over how drivers perform their work, including delivery methods and schedules.
“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,” said Labor Commissioner Asaro-Angelo. “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 lawsuit outlines how Amazon allegedly fails to satisfy New Jersey’s “ABC Test” for determining employee status. Under the test, a business must prove that a worker is free from control, performs work outside the usual course of the company’s business, and is engaged in an independently established trade. The state contends that Amazon’s close supervision, required use of its delivery app, performance tracking, and inability of drivers to negotiate pay all point to an employment relationship.
The complaint further alleges several labor law violations, including unlawful withholding of wages, failure to pay minimum wage and overtime, failure to provide earned sick leave, and failure to contribute to required state trust funds.
Examples cited in the lawsuit include a driver who routinely worked more than 40 hours per week without overtime pay, another who lost income after being injured and denied paid sick leave, and a driver whose out-of-pocket toll expenses reduced his pay below minimum wage.
The state seeks to recover unpaid wages and benefits, impose penalties, and stop Amazon’s alleged unlawful practices. The lawsuit also seeks damages and reimbursement to state funds, along with attorneys’ fees and other enforcement costs.
“Flex drivers are workers, not contractors,” Platkin said. “And in New Jersey, we will not allow any company — no matter how large — to ignore our labor laws or take advantage of our residents.”
New Jersey’s legal team includes Deputy Attorneys General Eve E. Weissman and Matthew D. Harm of the Office of the Attorney General’s Division of Law, under the supervision of Assistant Attorneys General Christina Brandt-Young and Mayur P. Saxena, and Deputy Director Sara Gregory.
Individuals who have worked for Amazon Flex in New Jersey or have information related to the case are encouraged to contact the Attorney General’s Office through an online form.
