Amazon Settles Teamsters Lawsuit Alleging Worker Retaliation

Amazon has agreed to a settlement with federal labor officials, vowing not to retaliate against workers who participate in strikes. As part of the agreement, the e-commerce giant will reinstate unpaid time off (UPT) that was “illegally” deducted from employees who previously walked off the job. This settlement ensures that all Amazon workers can now strike in the future without the fear of losing their UPT, according to a statement released by the International Brotherhood of Teamsters.

The National Labor Relations Board (NLRB) settlement will see over 100 employees have their unpaid time off restored. Amazon spokesperson Eileen Hards stated that the company did not admit wrongdoing as part of the resolution. “While we believe our team managed these situations appropriately, we’ve agreed to resolve the matter so we can move forward and continue working directly with our employees to make Amazon a great place to work,” Hards told CNBC.

Amazon’s policy grants frontline workers a finite amount of unpaid leave, intended for “last minute issues or emergencies,” as outlined in an internal employee handbook cited in the NLRB’s complaint. Exceeding this allotment of UPT hours puts employees at risk of termination.

The NLRB’s complaint highlighted several instances since 2022 where Amazon deducted UPT from employees following work stoppages. In at least one case, striking workers expressed concerns about job security after their UPT balance turned negative due to Amazon’s deductions. The NLRB emphasized that such deductions and disciplinary points act as unlawful coercion, implicitly warning employees that their protected concerted activities bring them closer to termination.

The Teamsters, a significant labor union in the United States, has been actively pursuing efforts to organize Amazon’s vast network of warehouse and delivery personnel. The union established an Amazon division in 2021 to provide support and resources for workers engaged in unionization efforts. Amazon’s frontline workforce has seen intermittent unionization attempts over the past decade, with varying degrees of success. To date, only two Amazon-affiliated facilities—a Staten Island warehouse and a Whole Foods store in Philadelphia—have successfully unionized.

In December 2024, Amazon workers at seven U.S. delivery hubs participated in a strike organized by the Teamsters. The union claims to represent nearly 10,000 Amazon employees, a figure disputed by the company. Amazon asserts that its employees have the right to decide whether or not to join a union. However, the company has faced considerable scrutiny from employees, lawmakers, and federal agencies regarding its labor practices, including accusations of anti-union tactics.

In 2024, the NLRB formally accused Amazon of maintaining an “overly broad” attendance policy. The NLRB contended that this policy subtly threatened employees nationwide with consequences, potentially including termination, for participating in strikes or walkouts, thereby violating federal labor laws. The NLRB’s complaint originated from charges filed by the Teamsters and Amazon workers across various states, including New Jersey, Ohio, Maryland, Georgia, and Minnesota.

Under the terms of the settlement, Amazon has committed to refraining from terminating or discriminating against employees who exceeded their UPT balance or had UPT deducted after engaging in a strike or work stoppage. Furthermore, Amazon is required to post a notice in employee break rooms at all 1,300 of its facilities nationwide. This notice will inform workers of their rights to organize and detail the provisions of the settlement, according to the Teamsters.