![]() ![]() "If they are your employee, you are liable." "If an independent contractor gets into an accident, they cover the damages and liability from their own insurance," says Schlactus. Why is Amazon's requirement that you hire, rather than contract with, drivers so onerous? Because it subjects the delivery company to a wide array of expenses, from employment taxes, workers compensation and unemployment insurance levies, as well as to substantial additional liability. "My read is that Amazon is doing this to address a dwindling supply of independent delivery companies who are willing and able to work with them." "The challenges of doing delivery work for Amazon have taken many dozens of delivery owners by surprise," Schlactus says. ![]() The reason: Amazon requires that delivery companies hire their drivers as employees, rather than work with independent contractors. ![]() The costs of working with Amazon are so substantial that independent delivery companies are increasingly turning away Amazon's business, says Peter Schlactus, co-founder of the Association for Delivery Drivers. ![]()
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