Did Amazon Misclassify Its Flex Drivers in Violation of Labor Law?
/The number of employment law violation complaints lodged against Amazon continues to rise. A New Jersey filing has the court considering Amazon's classification of Amazon Flex drivers to determine if misclassification allegations are valid.
Case: Robert Asaro-Angelo, Commissioner of the New Jersey Department of Labor and Workforce Development v. Amazon.com, Inc. and Amazon Logistics, Inc.
Court: Superior Court of New Jersey, Law Division – Essex County
Case No.: SX-L-008049-25
Did Amazon Engage in Systemic Misclassification Violations?
The civil action claimed that Amazon's practices constituted a systemic violation of labor laws (wage and hour laws, benefit laws, and tax laws) by allegedly misclassifying thousands of Amazon Flex delivery drivers as independent contractors. As independent contractors, the workers are not eligible for the majority of protections provided to America's workforce by state and federal labor laws. The plaintiff argues that according to the legal definition, Amazon Flex drivers should be classified as employees.
Defining Employee in Asaro-Angelo v. Amazon: According to New Jersey labor law, workers are defined as "employees" unless the employer can prove otherwise using the strict "ABC test." The Department argues that Amazon cannot meet that requirement, as the company exercises substantial control over when, where, and how Flex drivers perform their work.
The Defendants: Amazon.com, Inc. and Amazon Logistics, Inc.
Amazon.com, Inc. and its subsidiary Amazon Logistics, Inc. are named defendants. The complaint focuses on the Amazon Flex program, launched in 2015, which uses individuals—called "Delivery Partners"—to deliver packages using their own vehicles.
According to the filing, Amazon dictates nearly every aspect of drivers' work through its proprietary smartphone app. Flex drivers must accept delivery blocks through the app, follow Amazon's instructions on timing and routes, and comply with the company's extensive Terms of Service. The state argues that this level of control is indicative of a traditional employment setup rather than the situation seen with a hired independent contractor.
The lawsuit also notes that Flex drivers are financially disadvantaged by this model. They are responsible for gas, tolls, maintenance, and insurance costs, and often earn less than minimum wage once expenses are factored in. The Department contends that these drivers should receive the same protections as other Amazon employees, including access to disability coverage, paid sick leave, and unemployment insurance.
A History of the Case: The State Files Suit to Address the Issue
The state's detailed complaint (filed on October 20, 2025 in Essex County Superior Court) marks one of the most aggressive state-level enforcement actions Amazon has faced yet in connection to alleged employment law violations.
The state alleges that Amazon's classification system violates multiple New Jersey labor laws, including:
The Wage and Hour Law (WHL)
The Wage Payment Law (WPL)
The Earned Sick Leave Law (ESLL)
The Unemployment Compensation Law (UCL)
The Temporary Disability Benefits Law (TDBL)
The lawsuit seeks 1) injunctive relief (to stop Amazon from misclassifying drivers), 2) declaratory relief (affirming that Flex drivers are employees), and 3) monetary penalties (for each misclassified worker). Under N.J.S.A. 34:1A-1.18, penalties may include administrative fines and payments to misclassified workers of up to 5% of their gross earnings over the past twelve months.
The filing also references ongoing audits and investigations of Amazon's practices under the state's unemployment and benefits programs, suggesting a broader compliance inquiry into how the company treats gig-based workers.
The Main Question Being Considered: Employee or Independent Contractor?
The heart of the case lies in whether Amazon Flex drivers are true independent contractors or employees under New Jersey law.
To defend its model, Amazon will likely rely on its argument that Flex drivers choose their schedules and use their own vehicles—features typically associated with independent contracting. However, the state contends that Amazon's pervasive control over drivers' work patterns, routes, and performance metrics makes them employees in every meaningful sense.
Under the ABC test, a worker is an independent contractor only if:
A) They are free from the company's control in performing their work;
B) Their work falls outside the usual course of the company's business; and
C) They operate an independently established trade or business.
The Department argues Amazon fails all three prongs.
Why This Case Matters to Workers Nationwide
Although filed in New Jersey, this lawsuit reflects a growing national debate over the "gig economy" and the rights of workers employed through digital platforms. Similar lawsuits and audits have been filed against Amazon in other states, including cases referencing Amazon Flex under the federal Fair Labor Standards Act (FLSA).
For California workers (who are protected under the Dynamex and AB 5 rulings), the case underscores how state-level enforcement continues to challenge corporate attempts to bypass employment protections. Misclassified workers lose not only overtime and benefits but also long-term rights to unemployment, family leave, and workers' compensation coverage.
FAQ: New Jersey Department of Labor v. Amazon.com, Inc.
Q: What is Amazon accused of in this lawsuit?
A: The Department of Labor alleges that Amazon misclassified Flex delivery drivers, and in doing so, denied wages, benefits and legal protections they should have received.
Q: What laws are cited in the complaint?
A: The complaint cites violations of the New Jersey Wage and Hour Law, Wage Payment Law, Earned Sick Leave Law, Unemployment Compensation Law, and Temporary Disability Benefits Law, along with penalties under N.J.S.A. 34:1A-1.18.
Q: What penalties could Amazon face?
A: The state seeks injunctive and declaratory relief, plus financial penalties for each misclassified worker—potentially up to 5% of each worker's gross annual earnings—and recovery of unpaid wages and benefits.
If you are misclassified on the job or denied your wages or benefits, contact our experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Dedicated labor law attorneys are ready to help you learn about your rights and how to pursue fair compensation under state and federal labor laws at our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, and Chicago.