Teamsters file NY WARN Act complaint against Amazon over job losses
The International Brotherhood of Teamsters and allies filed a complaint with the New York Department of Labor on Aug. 18, 2026, alleging Amazon violated the NY WARN Act. The report claims Amazon closed 35 Delivery Service Partners since 2018, causing over 3,500 job losses and potential $11 million in back wages. The unions argue Amazon uses DSPs as shell corporations to avoid legal responsibilities.

*this image is generated using AI for illustrative purposes only.
The International Brotherhood of Teamsters, alongside the National Employment Law Project, Action Lab, and Alliance for a Greater New York, filed a complaint with the New York Department of Labor on Aug. 18, 2026. The group alleges that Amazon violated the New York State Worker Adjustment and Retraining Notification (NY WARN) Act by failing to provide required notice or severance to workers affected by mass layoffs.
The complaint centers on Amazon’s use of Delivery Service Partners (DSPs), which the unions describe as shell corporations used to shield the company from legal responsibility. Under the NY WARN Act, private employers with more than 50 workers in the state must provide at least 90 days’ advance written notice or severance before mass layoffs affecting 25 or more people.
Key Allegations
According to the report released simultaneously with the complaint:
- Amazon closed 35 DSPs in New York since 2018.
- These closures resulted in the loss of over 3,500 jobs.
- A majority of affected drivers did not receive the legally mandated advance notice.
- Amazon may owe as much as $11 million in back wages.
| Metric | Figure |
|---|---|
| DSP closures since 2018 | 35 |
| Jobs lost | Over 3,500 |
| Potential back wages owed | $11 million |
What the Numbers Show
The data highlights a significant concentration of job losses within the transportation and warehousing sector. Since 2023, 25 percent of all workers laid off in New York’s entire transportation and warehousing industry were Amazon drivers. This figure suggests that Amazon’s operational changes account for a quarter of the sector’s total workforce reduction during this period, despite the company’s public positioning as a job creator.
Regulatory and Legislative Context
The Teamsters are demanding that the Office of the Commissioner of Labor investigate Amazon’s control over its third-party contractors. The unions argue that because most DSPs have Amazon as their only customer, the termination of a contract effectively shuts down the entire business, triggering WARN Act obligations that Amazon allegedly evades.
In parallel, the Teamsters and allies are campaigning for the Delivery Protection Act in New York City. The proposed legislation would end the subcontracting model and require Amazon to directly hire its drivers. Paul Sonn, State Policy Program Director at NELP, stated that the report highlights DSPs as “pawns of a giant corporation” rather than bona fide independent businesses.
Randy Korgan, Director of the Teamsters Amazon Division, called Amazon a “parasitic white-collar crime syndicate,” while Tom Gesualdi, President of Teamsters Joint Council 16, asserted that Amazon has killed more logistics jobs than any other company in New York.
How might a successful WARN Act ruling against Amazon force the company to restructure its global Delivery Service Partner model?
What impact could the proposed Delivery Protection Act have on Amazon's operational costs and delivery speed in New York City if enacted?
Will this legal challenge encourage other labor unions to file similar complaints against gig-economy platforms using subcontractor models in other states?

































