New Jersey Sues Amazon, Alleging It Keeps Delivery Wages Down

New Jersey’s attorney general filed an antitrust lawsuit

New Jersey’s attorney general filed an antitrust lawsuit on Tuesday accusing Amazon of using its dominant market position to hold down pay for its delivery drivers, a move that escalates regulatory pressure on the e-commerce giant.

The complaint, brought in state court, argues that Amazon unlawfully leveraged its control over the logistics market to force delivery contractors into agreements that suppress wages, while also blocking them from pursuing independent work. This conduct, the state says, violates New Jersey’s competition laws and harms both workers and the broader economy.

Attorney General Matthew Platkin said the company’s practices have effectively created a system where drivers are underpaid, undermining fair labor competition across the state. The lawsuit seeks financial penalties, as well as a court order to stop Amazon from enforcing what it calls anticompetitive contract clauses.

Amazon responded by saying the allegations mischaracteri…

Amazon responded by saying the allegations mischaracterize its business model, maintaining that its delivery partners operate independently and set their own terms. The company noted that it already faces similar scrutiny from federal regulators, including a pending Federal Trade Commission lawsuit.

Legal experts say this case could test how far state authorities can go in challenging platform-based business structures, especially when they involve gig-economy contractors. The outcome may influence how other states approach Amazon’s delivery network.

For now, drivers in New Jersey continue to navigate a system that many say offers limited flexibility and stagnant pay, even as Amazon posts record revenues. The lawsuit adds another front in the company’s ongoing battle with regulators over labor practices and market power.