NLRB Rules Amazon Is ‘Joint Employer’ of Subcontracted Delivery Drivers

Amazon is reportedly under scrutiny as the National Labor Relations Board (NLRB) concluded that a group of subcontracted delivery drivers in Southern California were employees of Amazon itself.

The labor board prosecutors also determined that Amazon violated federal labor law by making illegal threats and refusing to negotiate with the workers after they organized with the Teamsters, Bloomberg reported Thursday (Aug. 22).

This development could have implications for Amazon’s operations nationwide, potentially leading to more subcontracted drivers unionizing and forcing the company to negotiate with them, according to the report.

The NLRB found the drivers to be employees of both Amazon and the delivery service partner (DSP) company that hired them, the report said. This determination establishes Amazon as a “joint employer,” meaning the company has enough control over workers’ conditions to be legally responsible for their treatment and obligated to negotiate if they unionize.

Amazon denied any wrongdoing and dismissed the claims made by the Teamsters, per the report. The company maintained that the subcontracted drivers are employees of the DSPs, which are independent businesses that Amazon contracts with for its delivery needs.

The arrangement allowed Amazon to avoid the costs and liabilities associated with directly employing these drivers, the report said.

Amazon imposes extensive rules on subcontracted drivers, including requirements related to personal hygiene, drug testing and social media conduct, according to the report. The DSPs must follow Amazon’s policies, which the company can unilaterally change, and are also mandated to provide Amazon with access to their premises and driver information.

If no settlement is reached, the NLRB’s regional director plans to issue a formal complaint against Amazon, the report said. While the agency lacks the authority to impose punitive damages or hold executives personally liable, it can order the company to change policies, compensate terminated workers, reinstate them and negotiate with unions.

The complaints issued by NLRB prosecutors will be considered by agency judges, with the possibility of further appeals to labor board members and federal appeals courts, per the report.

Amazon launched its Delivery Service Partner program in 2018, presenting it as a way to help tiny companies go big and would-be entrepreneurs go into business, PYMNTS reported in 2022. At that time, four years after launching the program, Amazon had more than 3,000 DSPs worldwide.