The Wisconsin Supreme Court on Tuesday let stand a lower court ruling that declared some delivery drivers for Amazon were employees as the state argued, not independent contractors as the online retail giant contended, according to an Associated Press report.
The court, in a unanimous decision, said the appeal was “improvidently granted,” meaning the Supreme Court should not have reviewed the case. That decision dismissing the case, issued after the court heard oral arguments, leaves a 2023 Wisconsin appeals court ruling against Amazon in place.
That ruling found that drivers in the Amazon Flex program are a part of the state’s unemployment insurance system and entitled to jobless pay if they are laid off. The decision means an Amazon subsidiary, Amazon Logistics, will likely be hit with a tax bill of more than $200,000.
The case was closely watched for what effect a ruling would have on workers in the “gig economy.”
Labor unions, along with the state Department of Workforce Development, pushed for the Wisconsin Supreme Court to recognize the Amazon Flex workers as employees.
Attorneys for Wisconsin and Amazon did not immediately return messages Tuesday.
