Amazon.com Inc.’s sprawling delivery network is at risk of being reordered after a federal labor board official determined that the e-commerce giant jointly employed the drivers of one of its contractors.
The preliminary decision by a National Labor Relations Board regional director on Thursday could make it harder for US businesses to distance themselves from labor-law liability by outsourcing front-line work to contractors, if it withstands a lengthy legal process.
Still, it opens the door for the International Brotherhood of Teamsters and other unions to organize Amazon drivers nationwide—and force the company to come to the bargaining table—two things the online retailer will likely fight in court.
“It could affect the whole franchise world,” said Cathy Creighton, a former union attorney now with the Cornell University School of Industrial and Labor Relations. “It sends a message loud and clear to anyone trying to contract to avoid their obligations under the law.”
The regional director, Mori Rubin, found that Amazon was the legal employer for a group of delivery drivers near Los Angeles, teeing up a landmark win for unions in the years-long fight over joint employer relationships.
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