State says Amazon illegally misclassified its drivers
By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey
..... New Jersey official say Amazon improperly classified its delivery drivers as freelance workers rather than regular employees in a bid to skip out employee benefits and state taxes, amid a broader trend of New Jersey authorities going after companies they say are improperly classifying workers as freelancers.
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In an eight-count suit field in Essex county Court on October 20, [2025] the New Jersey Labor Department and New Jersey Attorney General's Office argued that Amazon and Amazon Logistics were illegally misclassifying this Flex delivery drivers as freelances - more formally known as independent contractors or also dubbed gig workers.
..... The state is asking the court to stop Amazon from its alleged misclassification practices and order the company to pay over any unpaid wages to flex divers, and unpaid taxes to the state, as well as penalties.
..... The e-commerce giant "shifted the risk of doing business and those associated expenses to Flex drivers" and did not make payments into the New Jersey unemployment and state disability funds, reads a joint Monday 10/20/2025] press release.
..... State officials argue that this kind of misclassification denies workers benefits such as unemployment, earned sick leave and family leave, and enables compompanys to avoid paying taxes to the state.
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"As Amazon flouts the law, other New Jersey employers suffer because they must take up any shortfalls to the trust funds," the press release reads.
..... "This unlawful misclassification of employees as independent contractors deprive them of their right to the minimum wage, mandated overtime, earned sick leave, and job-protected family leave," the press release continues.
..... In an emailed statement, Amazon spokesperson Mary Kate Paradis called the lawsuit "wrong on the facts and the law" and said it :misrepresents what Amazon Flex is and how it works."
..... Flex drivers are independent contractors who sue their won vehicles to deliver packages for Amazon. Drivers can sign up to deliver packages via an app on apple and Android phones.
..... Proponents like Amazon argue that it offers a flexible and individually-tailored work schedule for anyone looking to make extra money.
..... "For nearly a decade, Amazon flex has empowered independent delivery partners to choose delivery blocks that fit their schedules, giving them the freedom to decide when and where they work," said Paradis, the Amazon spokesperson. "This flexibility is one of the main reasons many drivers say they enjoy the program."
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But according to New Jersey authorities, the drivers incur many expenses not covered by Amazon, such as tolls, care maintenance, insurance and gas.
..... Drivers work without overtime pay even if they exceed a 40-hour work week as a flex driver, state authorities said, and also don't have access to sick time like regular employees.
..... "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,' New Jersey Attorney General Matthew Platkin said in a statement. "Amazon is looking out or itself."
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"Amazon is taking advantage of Flex drivers and enriching its bottom line by failing to obey our labor laws and longstanding its business expenses for the benefit of shareholders," Platkin said.
State officials eye changes to NJ freelancer rules
..... In September, [2025] the New Jersey Labor Department announced a $19.4 million settlement with Lyft over allegations that the ride-sharing giant misclassified more than 100,000 workers as freelancers rather than regular employees.
..... Monday's [10/20/2025] lawsuit comes as state officials are exploring ways to overhaul the state's independent contractor rules so that more freelances would be considered regular employees.
..... Under that proposal, truckers, as well as Uber and Lyft drivers and DoorDash and Grubhub drivers, could be considered regular company employees rather than gig workers.
..... But the fate of the rule remains uncertain amid the governor;s race between Republican former state assemblyman Jack Ciattarelli and U.S. Representative Mikie Sherrill, the Democrat nominee.
..... Ciatarelli said that if elected, he would nix the proposal, reported New Jersey Business Magazine.
..... Sherrill acknowledged the controversy around the proposal, saying she would review it if elected and would "have both businesses and workers at the table" to develop any proposed rule changes.