Amazon.com Inc. (NASDAQ:AMZN) Lawsuit pitting the firm and its delivery sub-contractors drivers is adopting a new turn as the aggrieved SilverStar Delivery Ltd employees in a labor class suit. These drivers accuse Amazon of violating their labor rights by dishonoring their overtime payment claims. Though the case was initially against SilverStar, the driver’s attorney has moved in to seek Amazon’s enjoinment as a joint-employer.
Break down of the amazon lawsuit
Primarily, amazon engages the services of small and medium scale logistics companies across the country to haul its goods to the customers their purchasers. Nonetheless, the giant online retailer’s code of conduct dictates that the company dictates that the company gains direct control of the partner’s logistics personnel. This means that the said drivers take orders and directions directly from Amazon and not from their direct employer. In addition, the driver’s attorney Chris Williams maintains that “Amazon personnel tracked the routes taken by the drivers, they wore Amazon logos” implying that Silverstar was just an employer of record while the workers directly worked for Amazon.
Hiding behind partner veil
The amazon lawsuit currently filed in Chicago Federal court is an example of the canny ways various giant institutions have adopted to avoid direct legal obligation of an employer to an employee. According to the current U.S department of labor’s wage and hour division, David Weil, more business are various staffing processes and hiding under the veil of labor outsourcing in partner or franchise businesses.
He however said, this are just cases of joint employments where one of the partners is “larger and more established, with a greater ability to implement policy or systemic changes to ensure compliance.”
This revelation gives hope to the workers to successfully force Amazon into honoring settling their overtime dues now and in future. It has also ignited similar suits against Amazon with other partner workers in Washington state and California. It will be interesting to note what effect the Amazon lawsuit will have on the company stock price that closed the last trading session at $767.03 with a 0.19% increase of $1.47.
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