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Demeter

(85,373 posts)
10. Amazon delivery workers sue, say they should be full employees
Wed Oct 28, 2015, 06:31 AM
Oct 2015
http://www.marketwatch.com/story/amazon-delivery-workers-sue-say-they-should-be-full-employees-2015-10-27?siteid=YAHOOB

Amazon.com Inc., which has quickly built a network of on-demand workers for its one-hour delivery service, now faces a lawsuit over how those workers are treated.

The suit, filed Tuesday in Los Angeles County, Calif., Superior Court on behalf of four couriers, seeks back wages and compensation for expenses like fuel and workers’ compensation insurance. The workers are contracted through Scoobeez, a unit of closely held ABT Holdings Inc.

The action potentially thrusts Amazon AMZN, +0.49% into the center of a debate roiling Silicon Valley over whether on-demand workers should be treated as employees or independent contractors. Companies such as Uber Technologies Inc. and Postmates Inc. have faced similar suits over their workforce.

Amazon’s Prime Now service, available in more than a dozen U.S. metropolitan areas, promises delivery of thousands of goods within one hour for $7.99 or two hours or more free. The Seattle retailer recently introduced the service in San Francisco and San Antonio. Amazon recently began a separate delivery program that relies on couriers not under contract with third-party companies. The Flex service allows regular people to sign up for shifts using their smartphones and make package delivery for Amazon in Seattle.

In the suit, the couriers allege Amazon pays less than minimum wage and treats them like employees, including requiring they wear uniforms and work at set times.

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