Amazon Wins NLRB Approval to Avoid Joint-Employer Status With DSPs
AMZN•An NLRB administrative law judge approved a settlement between the NLRB General Counsel and Amazon that avoids a joint-employer finding with its Direct Service Providers. The Teamsters have filed an appeal challenging the ALJ’s ruling after a complaint over safety violations and union recognition at Amazon’s Palmdale DSP facility.
1. Settlement Overview
An NLRB administrative law judge signed off on an agreement between the NLRB General Counsel and Amazon, resolving a complaint without establishing Amazon as a joint employer of DSP (Direct Service Provider) employees. This settlement ends the potential precedent-setting case while allowing Amazon to continue its delivery partnerships under existing contracts.
2. Background of the Complaint
The dispute began with a September 2024 complaint filed by the regional NLRB director over Amazon’s termination of Battle Tested Strategies, a DSP at the Palmdale DAX8 facility. Amazon cited repeated safety violations, including vehicles with faulty brakes and insurance lapses, while BTS asserted the cancellation was in retaliation for its union recognition.
3. Teamsters’ Opposition
The Teamsters union strongly opposed the settlement, labeling it a defective unilateral deal and swiftly filed an appeal seeking to reinstate the joint-employer claim. They argue that Amazon’s level of control over DSP operations satisfies joint-employer criteria, which would have required Amazon to recognize and bargain with the Teamsters.
4. Implications for Amazon
By avoiding a joint-employer ruling, Amazon preserves its current DSP network structure and limits its collective bargaining exposure. However, the Teamsters’ appeal means labor relations uncertainties persist, and a future ruling could still reshape Amazon’s delivery model and labor cost obligations.
