Truck Drivers, Couriers, and Delivery Service Workers Beware! You May Be Misclassified
January 22nd, 2025
Misclassification in Trucking, Courier, and Delivery Services
Employee misclassification is pervasive across the United States, particularly in the trucking, courier services, and delivery industries. Employers frequently classify workers as “independent contractors” (ICs) rather than employees. This allows companies to save millions annually by sidestepping their legal obligations to pay withholding taxes, provide workers’ compensation and unemployment insurance, pay overtime, and reimburse vehicle maintenance and fuel. It also makes it easier for companies to avoid paying benefits like health insurance and providing rest breaks. This practice denies workers the rights and protections they deserve and means less income and no access to critical protections like workers’ compensation or unemployment insurance.
Amazon Flex Drivers: Misclassification and Employee Status
Amazon Flex drivers have become a focal point in the national conversation on worker misclassification. Flex drivers use their personal vehicles to deliver packages, operating under Amazon’s control and policies. While Amazon classifies them as independent contractors, a growing body of legal and agency decisions have concluded otherwise.
Consistent with this trend, lawsuits have been filed, for example, in states such as California, Massachusetts, and Washington, where Amazon Flex drivers have alleged misclassification and sought damages for:
- Unpaid Overtime: Drivers frequently work more than 40 hours per week without receiving overtime pay.
- Denied Rest Breaks: In states like California, drivers allege Amazon violates laws requiring meal and rest breaks.
- Unemployment and Workers’ Compensation Coverage: Misclassified drivers are excluded from these critical safety nets.
- Expense Reimbursements: Flex drivers must cover the cost of fuel, vehicle maintenance, tolls, and other work-related expenses, which drastically reduces their earnings.
Other companies facing independent contractor issues, like Amazon, include FedEx, OnTrac, USPak, and Swift.
Good News for Minnesota Workers: New Protections Under Minnesota Law
Minnesota recently enacted one of the best, if not the best, statutes in the country protecting workers from being misclassified as independent contractors. Effective July 1, 2024, Minnesota Statute § 181.722 substantially strengthened protections for Minnesota workers in industries where misclassification is prevalent, including trucking, courier, and delivery services. The statute prohibits anyone from entering into an independent contractor agreement that misrepresents the true nature of the parties’ relationship. It also imposes a per-violation penalty of up to $10,000 for those seeking to cut costs by entering into illegal independent contractor agreements with potential workers.
Key Changes to the Law:
- Stricter Classification Standards: Employers must now prove that the independent contractors they employ are genuinely independent. That is, they must demonstrate that the independent contractor operates a business separate from the employer and free from the employer’s control.
- Expanded Enforcement: The Minnesota Department of Labor and Industry (DLI) now has enhanced authority to investigate and enforce misclassification claims. Workers can also bring private lawsuits to recover damages and injunctive relief, meaning actual changes in how the employer treats its workers.
- Increased Penalties: Employers who misclassify workers face substantial penalties, including liability for unpaid wages, benefits, and tax contributions.
- Transparency in Contracts: Independent contractor agreements must clearly outline the nature of the relationship and provide detailed disclosures about the worker’s rights and obligations.
These changes empower workers and create significant risks for employers who continue to misclassify employees.
Why This Matters
Misclassification deprives workers of basic rights and protections while allowing companies to cut costs unfairly. Minnesota’s strengthened law represents a critical step in holding employers accountable. Truck drivers, couriers, and delivery workers—especially gig workers like Amazon Flex drivers—are now in a stronger position to fight for fair treatment.
What You Can Do
If you’re a truck driver, courier, or delivery worker working under an independent contractor arrangement—whether you work for Amazon Flex or another company—it’s vital to evaluate whether your classification status is legal. Signs of misclassification include:
- Being required to follow strict schedules and routes set by the company.
- Covering all work-related expenses, such as vehicle maintenance, fuel, and insurance.
- Being denied access to benefits like overtime pay, health insurance, and workers’ compensation.
- Having a contract that labels you as an IC but closely resembles an employment relationship.
Our legal team has extensive experience litigating high-profile misclassification cases, including cases against industry giants like FedEx. If you suspect you’ve been misclassified, we can help you fight for the wages, benefits, and protections you deserve.
Contact Us Today
If you believe you’ve been misclassified, we encourage you to contact our firm. When you call us at 612-605-4098 or submit a Case Review Form, your first point of significant contact will be with one of our Intake Specialists. Well-versed in Halunen Law’s practice areas, these professionals will listen to your concerns or review your Case Review and direct your inquiry accordingly. There is no charge for this confidential process. And, if we take your case, as a contingency-based law firm, there is no cost unless we win.
We’re here to help you navigate your rights under Minnesota law and ensure you get the treatment you deserve. Together, we can hold employers accountable and create a fairer workplace for everyone.