Amazon will pay contract delivery drivers $8.2 million to settle a wage-theft lawsuit
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- According to Vice News, Amazon agreed to pay $ 8.2 million to settle a wage theft.
- Contract delivery drivers said it was Amazon’s fault that drivers did not receive statutory breaks and overtime.
- Amazon faced similar legal challenges in California and other states.
- You can find more articles on Insider’s business page.
Amazon last month agreed to pay some of its contract delivery drivers in Washington state $ 8.2 million to settle a class theft lawsuit that was reported by Vice News on Friday and confirmed by Insider.
The lawsuit, originally filed by two Amazon delivery drivers in 2017, alleged that Amazon was partly to blame for the driver failing to illegally pay the minimum wage and denying them compensation for overtime and rest breaks.
The drivers, Gus Ortiz and Mark Fredley, worked for Amazon delivery service partner Jungle Trux – one of an extensive network of contractors that Amazon uses in part to reduce its legal liability and labor costs.
Ortiz and Fredley said Amazon was imposing delivery quotas of 150 to 200 packages per day, forcing drivers to skip statutory rest breaks and work past their 10-hour shifts to complete the routes, and Jungle Trux didn’t pay her for those extra hours.
The agreement, first announced on Friday, affects drivers who worked for eight Amazon Delivery Service Partners (DSPs) in Washington state between December 2014 and July 2020: Dash Delivery, Delivery Force, A-1 Express Delivery Service (operating as 1- 800) Kurier), Progistics Distribution, Revelation Delivery, Genesis Delivery and Transportation Brokerage Specialists.
“Amazon does not tolerate violations of labor law. If we discover repeated violations or are unable to correct violations of labor law, we terminate contracts with participants in the DSP program,” Leah Seay, spokeswoman for Amazon, told Insider in an explanation.
However, the company faced a number of legal challenges from drivers employed on its DSP network.
California regulators earlier this month fined Amazon $ 6.4 million for breach of wage theft for former Amazon contractor Green Messengers. Amazon told insiders it was “unaware of the investigation” and has appealed the fine.
According to Vice’s court records analysis, Amazon is also facing class theft lawsuits in Colorado, Florida, Illinois, Kansas, Maryland, Minnesota, Missouri, Ohio, Texas, and Washington state.