New Jersey sues Amazon over labor practices

Aug. 4 (UPI) — New Jersey on Tuesday sued Amazon, accusing the retailing giant of using its dominance to impose low pay and poor working conditions on its independent drivers.

In its lawsuit, the state accuses Amazon of abusing its power to prevent unionization and limit labor competition, in effect causing lower wages and harsher working conditions.

“Today, my office is acting to stand up for thousands of New Jersey delivery drivers who are being exploited every day by one of the world’s biggest, richest corporations,” New Jersey Attorney General Jennifer Davenport said in a statement.

The state’s complaint focuses on the company’s Delivery Service Partner program, which Amazon considers independent businesses.

New Jersey accuses the company of controlling every aspect of the DSP program — from hiring to scheduling — with “exploitative consequences for the drivers themselves.”

“As our complaint alleges, Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions thanks to its overwhelming power in the labor market,” Davenport said. “I will continue to fight monopolies and the devastating effects they have on our residents.”

New Jersey and 16 other states sued Amazon in 2023, saying the company uses anticompetitive and unfair strategies.

In 2024, the District of Columbia sued the company alleging it denied two neighborhoods high-speed delivery services.