New Jersey sues Amazon over driver wages and conditions

The state of New Jersey filed a federal antitrust lawsuit against Amazon on Tuesday, August 4, 2026, accusing the e-commerce giant of using its market dominance to suppress wages and impose harsh working conditions on thousands of delivery drivers. Attorney General Jennifer Davenport announced the complaint, which targets Amazon's Delivery Service Partner program, a network of contracted companies that handle last-mile deliveries.

The lawsuit, filed in the U.S. District Court for the District of New Jersey, alleges Amazon unlawfully maintains a "monopsony" over the market for delivery driver services, acting as a dominant buyer of labor that dictates terms and stifles competition. According to the state, the DSP contractors, launched by Amazon in 2018, are so reliant on the company's infrastructure, routes, and package processing that they lack bargaining power. The complaint asserts Amazon intentionally keeps these businesses small to prevent them from negotiating better compensation.

Central to the allegations are practices that New Jersey officials say limit labor competition and worker organizing. The lawsuit accuses Amazon of preventing DSPs from hiring each other's drivers...