NEW YORK (TheStreet) -- Amazon.com (AMZN) - Get Report faces a lawsuit filed on behalf of four Prime Now drivers who are seeking back wages and compensation for expenses such as fuel and workers' compensation insurance.
The drivers for Amazon's same-day delivery service were hired by a courier contractor, but work regular shifts exclusively for Amazon, Reuters reports. The lawsuit claims that this makes the drivers Amazon employees entitled to overtime, meal breaks and certain expenses.
The couriers allege they are paid below the minimum wage even though they are treated as Amazon employees and required to wear uniforms by the company, the Wall Street Journal reports.
The lawsuit further alleges the e-commerce giant doesn't forward tips paid by credit cards to drivers and determines which jobs and routes the drivers take, the Journal notes.
Earlier this year, FedEx (FDX) paid $227 million to resolve a similar lawsuit, and the attorney who argued on behalf of the FedEx drivers filed the lawsuit against Amazon, according to Reuters.
Shares of Amazon are climbing by 0.60% to 614.65 in late morning trading on Wednesday.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AMZN's revenue growth trails the industry average of 46.3%. Since the same quarter one year prior, revenues rose by 23.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Net operating cash flow has increased to $2,610.00 million or 47.70% when compared to the same quarter last year. Despite an increase in cash flow, AMAZON.COM INC's average is still marginally south of the industry average growth rate of 53.27%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market on the basis of return on equity, AMAZON.COM INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Powered by its strong earnings growth of 117.89% and other important driving factors, this stock has surged by 80.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- You can view the full analysis from the report here: AMZN