October 21, 2025
Elizabeth Weise/USA TODAY
The New Jersey Office of Attorney General filed a lawsuit against Amazon on Monday claiming the company is violating state labor laws by classifying its Flex delivery drivers as independent contractors instead of employees.
New Jersey is the latest state to sue Amazon over its labor practices, alleging the e-commerce giant is wrongly classifying some of its delivery drivers as independent contractors to deprive them of protections they would otherwise have as employees.
The New Jersey Office of Attorney General filed a lawsuit Monday claiming Amazon takes advantage of drivers in its Flex program, which lets people use their own cars to deliver packages. Flex drivers use an Amazon app to pick their time blocks and lock in pay rates to complete their chosen assignments.
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The majority of Amazon's deliveries are handled by full-time drivers who work as employees of the company's third-party delivery service partners. These logistics businesses typically lease their trucks from Amazon affiliates, operate under Amazon's rules and offer their employees benefit programs administered by Amazon.
When Amazon created the Flex program about a decade ago, the company touted greater personal convenience for drivers to build their own schedules. Flex drivers are classified as independent contractors instead of employees, meaning the drivers must pay for expenses including gas, insurance, maintenance and tolls related to their work.
The New Jersey Department of Labor and Workforce Development claims Amazon exploits its Flex drivers, using their status as independent contractors to avoid complying with laws governing minimum wage, overtime pay, earned sick leave and job-protected family leave. The state also claims Amazon's practices spare the company from having to pay into New Jersey's unemployment and disability benefits funds, leaving shortfalls that have to be covered by other employers.
"Flex drivers deserve the dignity and respect of proper classification, ensuring they receive the benefits and rights they are entitled to," New Jersey Labor Commissioner Robert Asaro-Angelo said. "Classifying workers correctly is New Jersey law, there are no exceptions, regardless of the company size. We are bringing this action to protect New Jersey's Flex drivers and our entire state."
The lawsuit, filed in the Superior Court of Essex County, details alleged harms done to Flex drivers as a result of how Amazon classifies them.
One Flex driver who regularly works more than 40 hours per week never receives the state's mandated overtime pay of 1 1/2 times their regular rate, the suit claims. After another Flex driver injured her back while picking up a package and was unable to work for Amazon for 11 days. The driver could not obtain state-mandated sick leave and ended up returning to the job before she fully recovered, the complaint says.
A third driver told labor investigators that the regular cost of tolls lowered his pay rate below the state's minimum wage of $15.49, which does not extend to independent contractors.
"We will not allow Amazon to expand its empire by exploiting New Jersey workers," Angelo-Asaro said.
Amazon says most of its Flex drivers earn $18 to $25 per hour. The company says its drivers are guaranteed to earn the minimum dollar amounts shown in the app when they choose their delivery blocks — usually three to four hours each — and are paid in full even when jobs are completed in less time than the app predicts. Amazon also says it does not have minimum delivery requirements for Flex drivers and does not prevent them from taking breaks at any time.
Amazon spokesperson Mary Kate Paradis said Tuesday the company is still reviewing the lawsuit.
"One thing is already clear: it's wrong on the facts and the law, and misrepresents what Amazon Flex is and how it works," Paradis said.
New Jersey began investigating Amazon Flex after receiving thousands of applications from drivers in the program who sought unemployment or temporary disability benefits. Some of these workers were awarded benefits despite Amazon not contributing to these funds for its Flex program workers, the state says.
In New Jersey, the labor department generally views independent contractors as workers whose roles are meaningfully distinct and somewhat autonomous from the rules and physical workplaces of employers who hire them.
The lawsuit claims Amazon undermines its classification of Flex drivers by requiring them "to agree to surveillance on the app" and by tracking driver performance with "standings" that influence how much work the company assigns them. The complaint claims Amazon's labor violations have cost Flex drivers and the state millions of dollars per year.
"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. "Amazon is looking out for itself. Amazon is taking advantage of Flex drivers and enriching its bottom line by failing to obey our labor laws and offloading its business expenses for the benefit of shareholders."
The lawsuit follows similar actions in other states, where labor laws regarding the gig economy have led to a slew of lawsuits over worker classification. Ride hail and food delivery apps like Uber, Lyft, DoorDash and GrubHub have faced legal action in multiple states in recent years, leading to conflicting court decisions and multimillion dollar settlements depending on the jurisdiction.
Last year, the Wisconsin Supreme Court upheld a lower court ruling that found Amazon Flex drivers should be classified as employees. The Virginia Supreme Court reached a similar conclusion earlier this year after reviewing a case that examined Amazon's state tax liabilities. Thousands of Amazon Flex drivers also have filed individual arbitration claims to recover damages in states including California, Illinois and Massachusetts.
The lawsuit in New Jersey seeks to obtain wages withheld from Amazon Flex drivers, impose fines and penalties on Amazon and recover unpaid funds for state unemployment and benefit programs.
