Contract Truck Drivers for Amazon Can Avoid Arbitration, Says Judge

A federal judge in Washington State has ruled against retail giant Amazon in favor of contract truck drivers who can now avoid having their case referred to arbitration. The ruling means that Amazon drivers are exempt from the Federal Arbitration Act, and a class action lawsuit against Amazon can now go forward in court instead of being referred to arbitration.

Case Background

The class action was brought on behalf of Amazon delivery drivers who were under a direct contract with the retailer, and were classified as independent contractors. They claim the contractor classification was spurious and that they were in fact employees of the company. The claim was brought under the Fair Labor Standards Act (FLSA).

Plaintiffs allege that because they were misclassified as contract truck drivers, Amazon was able to avoid paying them a minimum wage and reimbursing them for “necessary business expenses that the drivers must pay such as gas and car maintenance,” and did not pay them overtime for hours worked beyond the standard 40 hours a week.

Why Amazon’s Contract Truck Drivers Are Legally Employees

Amazon enters into contracts with drivers throughout the U.S. to deliver its goods to consumers. Plaintiffs say that although they are contract truck drivers, they are required to undergo unpaid company training and are subject to company rules–like an employee. Amazon issues specific instructions on how and where to deliver packages, dictates the delivery order and specified routes. If drivers miss scheduled shifts or fail to follow company policy, plaintiffs say they  are subject to termination.

In addition, Amazon drivers are paid an hourly wage for scheduled shifts. Due to traffic conditions and other issues beyond their control, it often requires more time to complete their scheduled deliveries. Plaintiffs say they are not compensated for these additional “off the clock” hours, in violation of Washington State labor statutes. Neither are they paid overtime for hours beyond the standard 40-hour work week, they claim, putting Amazon in violation of federal law as well.

Companies are Required to Cover Employee Expenses

Companies are required to cover employee expenses, but not necessarily those of independent contractors. According to the complaint, Amazon’s “contract truck drivers” are subject to company rules, schedules, routes and policies, like employees, but are required to cover their own job-related expenses, including vehicle repairs and maintenance, fuel, phone service, lodging and meals, etc. as if they were working on a 1099 basis.

Wage and Hour Laws

Throughout the United States, wage and hour laws, and truck driver pay laws, exist that employers must adhere to in their employment practices. Under most state laws, non-exempt minimum wage employees are entitled to “time and a half”, an increase of their hourly wages after working more than 40 hours in a week or eight in a single workday.

If a non-exempt employee, which these contract truck drivers are treated as, works over eight hours in a single day or over 40 hours a week, they become eligible for the overtime rate.

The FLSA protects these truck drivers’ rights. In fact, contract truck drivers in Arkansas won class certification in a federal labor law lawsuit.

Plaintiff Allegations

The lead plaintiffs in the class action lawsuit claim that by classifying them as contract truck drivers, Amazon has been able to avoid paying them minimum wage and has denied them lawful overtime pay. They are proposing to bring the action on behalf of themselves and all other Amazon drivers who have been contracted to provide delivery services since Oct. 4, 2013.

Defendant Amazon had attempted to force the plaintiffs into arbitration as per the Federal Arbitration Act; however, U.S. District Judge John C. Coughenour ruled that because the drivers deliver products across the country unaltered “in the same condition as they were shipped,” the drivers are exempt from federal arbitration rules.

The Contract Truck Driver Class Action Lawsuit is Case No. 2:16-cv-01554, U.S. District Court, Western District of Washington.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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