On March 27, 2024, the Wisconsin Supreme Court issued a landmark ruling declaring that Amazon delivery drivers are employees and not independent contractors. The ruling is seen as a major victory for drivers, who will enjoy labor law benefits and protections, including minimum wage, workers’ compensation, and health insurance.
Justice Ann Walsh Bradley, in a concurring decision, said the reason the court dismissed the case was that further review “would not serve any meaningful purpose” or any “further development of the law.” Justice Rebecca Bradley, in a separate writing, faulted Bradley for trying to explain the court’s decision, saying it “will only sow additional confusion.”
The case was closely watched for what effect a ruling would have on workers in the “gig economy.”
Labor unions, along with the state Department of Workforce Development, pushed for the Wisconsin Supreme Court to recognize the Amazon Flex workers as employees.
Stephanie Bloomingdale, president of the Wisconsin AFL-CIO, hailed the court’s action, calling it a “win for working people.”
Previously, Amazon classified its drivers as independent contractors, meaning they were not entitled to employee benefits. This has led to much controversy, with drivers claiming they are being exploited and not being paid fairly for their work.
The Wisconsin Supreme Court considered factors such as Amazon’s level of control over drivers, the driver’s ability to earn money, and the driver’s level of investment in the job. The court found that Amazon tightly controls its drivers’ work, including where and when they deliver. The court also found that the drivers did not have the ability to earn money independently and that they had to make significant investments in their work, such as purchasing trucks and insurance.
The Wisconsin Supreme Court’s ruling could have a major impact on the home delivery industry. Other companies like Uber and Lyft also classify their drivers as independent contractors, and they could face similar legal challenges.
The ruling could also have an impact on the gig economy, a term that describes the growing trend of workers working freelance or on short-term contracts. The ruling could make it harder for companies to classify workers as independent contractors, and could result in more workers being denied the benefits and protections of labor laws.
