Amazon Flex Agreement

Liss-Riordan says that one of the main obstacles to getting workers to take legal action over their classification is that many Flex employees agree to settle disputes with Amazon through arbitration when signing packages. Companies can now use arbitration clauses to prevent workers from banding together to bring a class action, following a Supreme Court ruling in May. (A new lawsuit, now before the Supreme Court, argues that transportation workers are exempt from this rule.) If I look back at the many things I accepted when I signed up for Flex, I found that I too was governed by a binding arbitration agreement. The only way to opt out of this arbitration agreement would have been to inform Amazon that I do not wish to be covered within 14 days of signing the agreement. “First Circuit has concluded that delivery drivers are exempt from the federal arbitration law,” Braden Core, a partner at Truck Firm Garvin Light Hanson-Feary, said in an email to FreightWaves. “This is important, because if the FAA had applied, the abandonment of the class in arbitration agreements would most likely have been implemented.” Class waiver is the part of the terms of use that, if implemented, would have prevented an employee who signed it from pursuing a group action. In the Court of Appeals for the First Circuit decision, the three-judge panel described the situation Waithaka and other Contracting parties of Amazon Flex faced. They receive an hourly rate, but are not compensated if they do not complete their service within the time limit. They are not paid for gas, maintenance or mobile phone costs. Waithaka and others must also sign a terms of use contract that requires litigation to go through arbitration, and they cannot be turned into class actions.

“This appeal asks us to decide whether AmFlex`s suppliers fall within the scope of the exception in this case,” the Court of Appeal wrote. “Because we come to the conclusion that they do and that their employment contracts are not subject to the FAA, we review and reject Amazon`s other arguments that there is nevertheless a valid and enforceable arbitration agreement between the parties.” The importance of the Waithaka decision against Amazon is threefold: it has decided that the driver, although he has kept all his activities in the Bay State, is still “in … Inter-States” meant that it was excluded from the FAA and that Amazon was not in a position to impose conciliation under federal law.

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