The Wisconsin Supreme Court on Tuesday upheld a lower court’s ruling that some Amazon delivery drivers are employees and not independent contractors, as the e-commerce company had claimed.
The court’s unanimous decision is Published on Tuesday, rejected Amazon’s appeal and said it was “suddenly granted.”This means the court will dismiss the case on the premises The lawsuit should not have been accepted.
Justice Ann Walsh Bradley said in a concurring opinion that the court concluded that reconsidering the case “would not lead to further development of the law.”
As per the decision of the state high court, 2023 Wisconsin Court of Appeals Decision For Amazon, a lower court found that drivers participating in the Amazon Flex program fall under state unemployment insurance programs and are eligible to receive unemployment benefits if they are fired. Associated Press reported.
of amazon flex program uses a smartphone application to coordinate the delivery of packages by individual drivers using private vehicles. Drivers worked around their own schedules, could choose from available “delivery blocks” and were considered independent contractors by Amazon.
The Wisconsin Department of Workforce Development conducted an audit of delivery drivers in 2018, and all but two of the more than 1,000 employees audited were found to be at Amazon Logistics for unemployment insurance tax purposes. announced that they were found to be eligible as “employees” of the subsidiary. Court documents.
The department found Amazon Logistics owed more than $205,000 in unemployment insurance taxes, penalties and interest to the state, according to court filings.
The Wisconsin Labor and Industrial Review Board upheld the agency’s claim that the drivers were employees, prompting Amazon Logistics to file suit in Waukesha County Circuit Court in Kansas, the Associated Press reported. A judge ruled that the drivers were independent contractors, and the Wisconsin Court of Appeals overturned that decision last year, sending the case to the state Supreme Court.
Amazon spokesman Steve Kelly said the company was “disappointed” by the high court’s decision.
“We’ve heard from most Amazon Flex delivery partners that they love the flexibility of the program, and we’re proud of the work they do on behalf of their customers every day,” Kelly wrote in The Hill. “We are disappointed that the Wisconsin Supreme Court has refused to consider these issues and provide much-needed guidance, and we are determining our next steps.”
The ruling was a victory for the Badger State union and the Department of Labor, which had argued for Amazon Flex drivers to be recognized as employees.
“this [the ruling] This means Amazon Flex drivers have additional rights and benefits, including access to unemployment compensation,” said Wisconsin AFL-CIO President Stephanie Bloomingdale. wrote in a statement Tuesday. “Particularly in the emerging gig economy, large and powerful companies like Amazon are misclassifying their employees as independent contractors and providing workers with essential workplace benefits such as minimum wage, overtime pay, and unemployment insurance. Rights are too often denied.
The Associated Press contributed to this report.
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