COMP NEWS – Over 15,000 contract drivers have filed legal suits against Amazon, alleging that the company has misclassified their status as workers in order to avoid paying proper wages and overtime compensation.

More than 15,000 Amazon contract drivers filed arbitration claims against the e-commerce giant on Tuesday, alleging Amazon classified them as independent contractors instead of employees with minimum wage and overtime rights.

Millions of Americans participate in the “gig economy,” freelancing work through delivery and ride apps like Lyft, Uber, Doordash and Instacart. But as gig work has gotten more popular, many of those workers say they are in fact employees, not just contractors, and therefore deserve more benefits and protections.

The definition and rights of a contract worker versus an employee, for example, has been fiercely debated in laws such as California’s Prop 22, which allows ride-hailing and delivery drivers to be treated as independent contractors with some added benefits, including a minimum earnings guarantee.

Amazon Flex, launched in 2015, allows independent contractors to sign up to deliver Amazon packages. Flex drivers provide Amazon Fresh grocery deliveries or same-day deliveries from the company’s warehouse hubs. Since the drivers are classified as independent contractors, these claims ask for compensation for unpaid wages and overtime, and reimbursement for expenses such as mileage and cell phone usage.

To read more about the legal claims, click here.

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