Amazon lost an appeals court fight, clearing the way for a labor case involving its delivery contractors to continue and keeping pressure on the company’s long-standing Delivery Service Partner model.
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In a late December ruling, the U.S. Court of Appeals for the Ninth Circuit rejected Amazon’s request to pause a National Labor Relations Board case tied to union activity at one of its delivery contractors in California. The court said federal law prevents judges from stopping cases that grow out of labor disputes.
Amazon had asked the court to temporarily halt the NLRB proceedings while it challenged the board’s structure and authority. The judges said they did not have the power to grant that request, which means the labor case will continue moving forward.
The dispute centers on delivery drivers who worked for Battle Tested Strategies, an Amazon Delivery Service Partner in Palmdale, California. Drivers there organized with the Teamsters, and the contractor recognized the union. The NLRB is now reviewing whether Amazon should be considered a joint employer of those drivers.
That question has big implications for Amazon’s last-mile delivery strategy. Amazon relies on thousands of DSPs across the U.S. to handle package delivery. The company has long said those drivers work for independent businesses, not Amazon itself.
If regulators ultimately decide Amazon is a joint employer, the company could face new responsibilities tied to labor negotiations and working conditions. That outcome could force changes to how Amazon manages and structures its delivery network.
Amazon has argued that the NLRB’s process is unconstitutional and has pointed to conflicting rulings from other courts. A separate appeals court has taken a different view in a similar case, creating a split that could eventually reach the U.S. Supreme Court.
For now, the Ninth Circuit ruling removes a key legal hurdle that Amazon hoped would slow the case. While the decision does not determine whether Amazon is a joint employer, it allows the NLRB case to continue without delay.
