Amazon's Alleged Unjust Labor Practices Prompt a Lawsuit by New Jersey
- Human Rights Research Center
- 3 minutes ago
- 3 min read
Author: Amy Asubonteng
August 10, 2026
HRRC supports all efforts in calling out unfair, monopolistic, and monopsonic practices and supports New Jersey’s Attorney General Davenport in her address to Amazon. HRRC calls for the fair compensation of all workers and emphasizes the need for more laws to help limit strategies and actions taken to unfairly dominate a given market.
![Amazon delivery trucks [Image credit: Wikimedia Commons]](https://static.wixstatic.com/media/f05ed1_d810b9203d384dc49236dffac6755803~mv2.jpg/v1/fill/w_980,h_433,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/f05ed1_d810b9203d384dc49236dffac6755803~mv2.jpg)
On Tuesday, August 4, New Jersey’s attorney general filed an antitrust lawsuit against Amazon under the claim that the company was exploiting its delivery companies and their drivers with lower wages and poor working conditions. The state’s attorney general, Jennifer Davenport, also accuses the trillion-dollar global business of abusing its power to maintain monopsony power.
A monopsony is when there is only one buyer dominating a market. Amazon reflects this power for two reasons: First, Amazon is estimated to control about 50% of the e-commerce market, and it is the main choice for many small businesses to sell their products. This would allow Amazon to keep prices of products from these small businesses and suppliers low, and limit the profit these very suppliers receive. Second, because of Amazon’s fortune and size, they employ hundreds of thousands of workers who, in a more competitive market, could work elsewhere. As in a lot of smaller regions across the United States, Amazon is the only business that hires warehouse workers, so residents are limited in employment options. The lawsuit addresses these points central to monopsony: these delivery contractors rely so heavily on Amazon that they lack the power to provide drivers with better pay or working conditions.
This would be the first lawsuit where an entire state has accused a company of illegal management to protect a monopsony.
Moreover, the lawsuit accuses Amazon of overtly controlling and monitoring route assignments, driver performance, hiring practices, uniforms, software, and delivery vehicles through their DSP (Delivery Service Partners) program, which relies on small contracted companies to handle delivery of packages. The complaint claims the drivers were monitored with AI, in-vehicle cameras, and more technology. The lawsuit further states that Amazon would punish efforts of unionization by changing or moving delivery routes. For example, Amazon allegedly ended a delivery operation after organizing it, which led to numerous drivers to lose their jobs.
The lawsuit presents more claims in addition to the aforementioned.
“My office is acting to stand up for thousands of New Jersey delivery drivers who are being exploited every day by one of the world’s biggest, richest corporations,” said Davenport.
Amazon denied these allegations and said the contractors, or delivery companies, take full management control of their service. If the allegations are true, however, Amazon would be charged for violating antitrust laws which seek to promote a free and fair economy through competition and the limitation of monopsonies and monopolies. That free and fair economy includes fair working conditions and pay — two human labor rights.
Glossary
AI (Artificial intelligence): the capability of computer systems or algorithms to imitate intelligent human behavior
Allege: to state without definite proof that someone has done something wrong or illegal
Attorney General: the chief law officer of a nation or state who represents the government in litigation and serves as its principal legal adviser
Anti-trust law: protecting against unfair business practices that limit competition or control prices
Contract: a binding agreement between two or more persons or parties
E-commerce: activities that relate to the buying and selling of goods and services over the Internet
Exploit: to use (someone or something) in a way that helps you unfairly
Market: the area of economic activity in which buyers and sellers come together and the forces of supply and demand affect prices
Monopolistic: of, relating to, or characteristic of a monopoly or a monopolist
Union: something formed by a combining or coalition of parts or members: such as a confederation of independent individuals (such as nations or persons) for some common purpose
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