Amazon Challenges New York State Over 'Unconstitutional' Labor Regulation

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Amazon Challenges New York State Over 'Unconstitutional' Labor Regulation
In this photograph taken on November 18, 2020 in Lille, a person poses with a smartphone showing an Amazon logo, in front of a computer screen displaying the home page of Amazon France sales website. DENIS CHARLET/AFP via Getty Images)/Getty Images

Amazon has filed a lawsuit against the New York State Public Employment Relations Board (PERB), claiming that a new labor law signed earlier this month is unconstitutional.

The law allows the state to step in and handle union and labor disputes when the federal labor board is unable to act.

The case was filed in federal court in Brooklyn. Amazon says the law, known as Senate Bill 8034A, wrongly gives power to New York's PERB that belongs to the federal National Labor Relations Board (NLRB).

According to Reuters, in the lawsuit, Amazon argues the law "flips US labor law on its head," adding that it creates a "collision of state and federal authority."

The company believes that only the NLRB should manage labor issues like union organizing and worker complaints.

The law was signed by Governor Kathy Hochul on September 5. Her office said it was meant to protect workers during a time when the NLRB has been slowed down.

In January, former President Trump removed a key NLRB member, leaving the board without enough people to make decisions. Since then, many cases have piled up with no action.

Amazon Warns of Confusion from NY Labor Rule

Supporters of the law say it's only temporary. It allows PERB to act only when the NLRB is not functioning properly.

If the federal board is working again, the state must step back. However, Amazon says that this setup will cause confusion, with two different agencies possibly handling the same complaints.

Amazon pointed to a recent example. PERB filed a complaint over the firing of Brima Sylla, a worker and union leader at Amazon's JFK8 warehouse in Staten Island, TEH said.

Amazon claims the NLRB was already investigating the matter when the state stepped in.

Adding to the legal battle, the NLRB itself has also sued New York in a separate case. The federal agency argues the new law "unlawfully usurps" its role and wants it blocked.

The outcome of these lawsuits could affect how labor disputes are handled across the country. If the courts let New York's law stand, other states might try similar laws. If not, the decision will keep labor regulation firmly under federal control.

For now, Amazon, which employs over 1.5 million people, wants the court to stop the law before it causes what it calls "irreparable harm" to businesses.

The case is Amazon.com Services LLC v. New York State Public Employment Relations Board, filed in the Eastern District of New York.

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