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A legal battle over Amazon’s control of its delivery contractors’ workers could have set a major precedent, before being settled out of court.PalmdaleToday

The federal government is moving to settle a yearslong case over Amazon’s treatment of a group of delivery drivers, averting what could have been a landmark ruling establishing the company as the boss of some of the workers it has long insisted aren’t its employees. The National Labor Relations Board has been prosecuting Amazon for allegedly violating the rights of drivers employed by one of the company’s former ‘delivery service partners’ in Palmdale, California.

Why it matters

This case had the potential to set a major precedent on the employment status of gig workers and the degree of control companies like Amazon have over their contractors’ employees. The settlement would cut off the trial before a ruling could be issued, avoiding a landmark decision that could have reshaped the relationship between tech giants and their logistics providers.

The details

Since 2024, the NLRB has been arguing that Amazon was the ‘joint employer’ of the drivers, meaning it had enough control over them to be liable for their treatment and was obligated to collectively bargain when they unionized with the Teamsters. Amazon has long insisted the drivers are not its employees.

• The NLRB case against Amazon has been ongoing since 2024.