The drivers weren't considered employees of Amazon or Scoobeez, its contracted courier company, but instead were classified as independent contractors. This made them ineligible for various protections given to employees under state and federal law, including overtime pay and mileage reimbursement. The National Employment Law Project, a Washington advocacy group, has estimated that employers can save up to 30 per cent of payroll costs by treating workers as contractors.

Increasing scrutiny

The US Department of Labor this year issued a memo to clarify how employees should be classified, with a crucial consideration being the ‘economic dependence’ of the worker on any particular employer. A worker is more likely to be considered an independent contractor if he or she has multiple clients and employees of his or her own. But if a worker only takes assignments from one company, and that company exercises control over every step of the work performed, he or she should be considered an employee.

‘Not debateable’

The plaintiffs allege that they were tightly controlled and that if they arrived even one minute outside the required two-hour delivery window, they could be disciplined or fired. Beth Ross, the lead attorney in the lawsuit, commented: ‘These are people who are in no way, shape or form in business for themselves. This is not debatable. These are people who fill out a job application, get hired and are given a work schedule.’ Sources: Los Angeles Times; CNNMoney