Teamsters Accuse Amazon of Massive Labor Law Violations in New York

The report alleges that Amazon utilizes its Delivery Service Partners (DSPs) as corporate shields to bypass legal requirements. Under the NY WARN Act, employers with over 50 staff members must provide 90 days' notice or severance pay for mass layoffs. Because these contractors rely exclusively on Amazon for business, the termination of a single contract frequently forces an entire firm to close, leaving drivers without compensation or warning.

Data indicates that since 2018, Amazon has shuttered 35 such facilities across New York, resulting in the loss of more than 3,500 positions. The union claims that 25 percent of all layoffs within the state’s transportation and warehousing sector since 2023 involved Amazon-linked drivers. Teamsters officials estimate the company may owe as much as $11 million in unpaid wages to those affected by these sudden closures.

In response to these findings, the Teamsters and partners such as the National Employment Law Project are pushing for the passage of the Delivery Protection Act in the New York City Council. This legislation aims to dismantle the current subcontracting model, effectively forcing Amazon to hire its delivery workforce directly. For now, the union is demanding that the New York Department of Labor launch a formal investigation into Amazon’s control over its third-party logistics network.