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Amazon sues New York over new labor law, calling it unconstitutional power grab

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Amazon has filed a lawsuit against the New York State Public Employment Relations Board (PERB), seeking to block enforcement of a new state law that it argues illegally intrudes on federal authority over private sector labor disputes.

The law, Senate Bill 8034A, was signed by Governor Kathy Hochul on September 5. She defended it as necessary to protect workers amid a backlog at the National Labor Relations Board (NLRB), which has been paralyzed since President Donald Trump removed Democratic member Gwynne Wilcox in January, leaving the agency without a quorum.

Amazon’s complaint, filed in Brooklyn federal court, claims the law is unconstitutional because it allows PERB to claim jurisdiction over union organizing, collective bargaining, and workplace disputes—areas traditionally overseen by the NLRB. “New York has created the collision of state and federal authority Congress sought to avoid,” Amazon said in the filing.

The conflict became immediate when PERB filed a charge over the August 9 firing of Brima Sylla, a Staten Island warehouse worker and union vice president, even as the NLRB had already begun its own review.

The NLRB itself sued New York on September 12, also seeking to block enforcement of the law, with Acting General Counsel William Cowen arguing that federal law preempts state measures regardless of the board’s quorum status.

With 1.56 million employees worldwide, Amazon has been a frequent flashpoint in labor disputes. The case could set an important precedent for whether states can temporarily step into labor oversight roles when the NLRB is gridlocked.

Lyft pays $19.4 million to New Jersey over driver classification dispute

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Lyft has agreed to pay $19.4 million to New Jersey after state officials concluded the company misclassified more than 100,000 drivers as independent contractors between 2014 and 2017. The payment follows an audit by the state’s Department of Labor and Workforce Development, which found Lyft failed to make required contributions to unemployment, disability, and family leave funds.

The audit assessed Lyft $10.8 million in unpaid contributions plus $8.5 million in penalties and interest. Lyft initially contested the findings but later withdrew its request for a hearing, paying the balance to settle the matter. The company said it still believes it classified drivers properly under state law but chose not to pursue further legal challenges.

New Jersey Attorney General Matthew Platkin and Labor Commissioner Robert Asaro-Angelo said the misclassification deprived workers of critical protections. “There is no reason temporary or on-demand workers … can’t be treated like other employees,” Asaro-Angelo emphasized.

The case reflects a broader trend of scrutiny on gig economy companies. Lyft previously reached a $27 million settlement with Massachusetts in June 2024, and both Lyft and Uber continue to face regulatory battles over whether drivers should be treated as employees entitled to benefits such as minimum wage, overtime, and sick leave.