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Amazon Delivery Drivers Settlement 2021

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Amazon Washington Delivery Drivers Settlement 2021 – Amazon To Pay $8.2 Million Over Allegedly Breaching Labor Laws

Amazon Washington Delivery Drivers Class Action Lawsuit

In 2017, two delivery drivers, Mark Fredley and Gus Ortiz, residing in Washington, filed a class action lawsuit against Amazon. 

The class action lawsuit asserts that the company treats its contract workers unfairly. 

In particular, it contends that contract delivery drivers hired by Amazon do not get for their overtime work. 

It argues that drivers are also not given enough breaks to rest from their work.

The lead plaintiffs also sued JungleTrux, one of the companies where Amazon contracts its delivery drivers. 

They complain that Amazon has infringed labor laws by treating their contract workers poorly.

The class action lawsuit declares that Amazon mandates its contract drivers to deliver up to 300 packages in a day. 

The huge quota causes drivers to overwork and sacrifices their rest hours to meet the requirement. 

The delivery drivers argue that they work for more than 10 hours to meet the delivery quote. They add that they were not paid for the extra hours worked and breaks they did not take.

The Settlement

The E-Commerce giant has not acknowledged any wrongdoings on their part.

The company maintains that they did not violate any allegations and the allegations are not true. 

Despite this, they have agreed to pay the settlement amounting to $8.2 million to resolve the issue and avoid further litigation. 

The company has acknowledged the settlement in March 2021.

According to the settlement terms, it will cover delivery drivers residing in Washington who were contracted under the following eight delivery service partners (DSP):

  • A-1 Express Delivery Service, Inc. (does business as 1-800 Courier)
  • Dash Delivery LLC
  • Delivery Force Corp.
  • Genesis Delivery Inc.
  • Jungle Trux Inc.
  • Proginistics Distribution Inc.
  • Revelation Delivery Inc.
  • Transportation Brokerage Specialists Inc.

Delivery drivers under the covered DSPs from December 20, 2014, to July 31, 2020, and have executed deliveries for Amazon customers are considered class members.

Settlement Terms

The settlement terms state that eligible class members will receive a part of the approved settlement fund as compensation. 

The exact amount will be computed among the Class Counsel and will depend on the following:

  • The average amount of damage incurred to the class member per workweek. This value will depend on the DSP rate.
  • The number of weeks the class member worked.

Data from Amazon, the DSP’s payroll, and the DSP’s timekeeping will be checked to ensure that the reward is calculated correctly.

Once the final amount is available for each class member, half of this amount will be declared and subject to government tax. 

The remaining half will be reported as non-wages, so it will not be covered by withholding tax. However, it will still be considered as taxable income.

It is estimated that Amazon will be able to payout affected class members 75 days after the final hearing’s approval.

Class members are not required to submit a claim form.

Important Dates

The deadline for filing objections and exclusions is on April 12, 2021.

The final hearing is scheduled for May 7, 2021.

Editor’s Note on Amazon Washington Delivery Drivers Settlement 2021:

This article is published to give you the latest settlement Amazon will payout to settle claims about unfair contract driver’s wages.

What are your thoughts on this piece? Do you know someone working as a delivery driver for Amazon?

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