Amazon workers await approval of $3.8M wage and hour settlement

amazon wage and hour settlementA proposed settlement of just under $3.8M with SMX for three former Amazon workers is awaiting approval in a deal that would conclude claims that the temporary staffing agency violated California wage and hour laws. This case involves 33,000 potential class members joined together in multidistrict litigation against Amazon and staffing contractors.

The lead plaintiffs worked as packers in Amazon’s San Bernardino, California warehouse. The proposed settlement would compensate potential class members for daily underpayment, interruptions of rest and meal periods, and the failure to provide correct and accurate wage statements.

In similar litigation, a group of former drivers in the Irvine, California warehouse for Amazon Prime Now delivery have filed suit against Amazon, claiming they were misclassified as independent contractors and denied overtime pay, workers’ compensation and reimbursement for mileage.

Amazon has a wide labor network including workers contracted by staffing agencies, some are Amazon employees, and some are robots. Last week, four Amazon contractors who are drivers hired by Prime Now, Amazon’s two-hour delivery service, have proposed a lawsuit in which they allege misclassification as contract workers.

Their lawyer argues that they should be classified as employes because they work shifts, have to wear uniforms branded with Amazon, and are told when and where they must be to perform their jobs. Additionally, the potential plaintiffs suggest that the cost of gas and tolls push their earnings below the legally required minimum in California.

Relevant Case Examples

FedEx independent contractor mislabeling case settles for $228M.

Uber drivers’ class action lawsuit alleging they have been misclassified as independent contractors, and are entitled to reimbursement for expenses such as gas and vehicle maintenance.

Polo Ralph Lauren employees settle lawsuit involving allegations of misclassification as exempt from overtime pay and missed rest periods.

J.R. Randall

J.R. Randall is an economist who resides in the Bay Area. He focuses his interest on range of economic topics. He has interest in deep sea fishing and art.