New Jersey’s attorney general filed a lawsuit against Amazon on Tuesday, alleging that the company has used its dominant market position to suppress wages and control working conditions for delivery drivers and the contractor companies that employ them. The legal action, brought under federal antitrust laws, was filed in the United States District Court for the District of New Jersey and centers on Amazon’s practices in the New Jersey and New York City markets.
The lawsuit contends that Amazon, as the largest buyer of delivery services in the region, exerts significant influence over its network of delivery service partners (D.S.P.s). These contractor companies, the suit claims, depend heavily on Amazon and have limited ability to negotiate pay or expand their businesses due to restrictive policies imposed by Amazon. Among the allegations are requirements that the partners use Amazon-branded vans, routing software, uniforms, and employment policies, effectively limiting their operational autonomy.
Attorney General Jennifer Davenport stated at a press conference that Amazon wields too much power over thousands of delivery workers in New Jersey, forcing them to accept lower wages and poor working conditions. The suit also claims that Amazon restricts the growth of these delivery companies to prevent them from gaining increased bargaining strength and prohibits them from hiring drivers affiliated with other companies in Amazon’s program, a measure that could suppress wages further.
Additionally, the lawsuit alleges that Amazon has retaliated against contractors and workers seeking to unionize. It points to coordinated anti-union messaging, including scripts and posters used across different delivery companies, which the lawsuit argues is evidence of Amazon’s direct involvement. “Independent small businesses do not produce identical messaging at scale by coincidence,” the suit states. Amazon has denied these allegations, with spokesperson Steve Kelly emphasizing that D.S.P.s operate as independent businesses that control their own hiring, fleet management, and capacity planning. Kelly also stated that employees are free to choose their employer and associate with any groups they wish.
Amazon has been expanding its own delivery network over the past several years to reduce reliance on traditional carriers like the U.S. Postal Service and United Parcel Service. According to logistics consultancy ShipMatrix, Amazon became the largest parcel carrier in the United States last year.
In response to the lawsuit, the New Jersey attorney general is seeking injunctive relief to prevent Amazon from terminating or threatening contracts with delivery companies as a means to deter unionization efforts. The case highlights ongoing concerns about Amazon’s influence over the gig economy and labor conditions among contract delivery workers.