Joseph Aaron Fried (left) and Michael L. Goldberg of Fried Goldberg. Courtesy photos

In a precedent-setting case in Georgia, the legal team at Fried Goldberg secured one of the first verdicts in the United States holding a major corporation accountable for the negligent actions of workers classified as independent contractors. This case, involving a child injured by an Amazon-contracted delivery driver, focused on how businesses use technology to direct and control the time, method, and manner of work performed by contractors. With similar cases emerging across the nation, companies relying on independent contractors will need to reassess their operations and legal risks.

The core issue in this case was whether Amazon could be held liable for the negligence of a driver working for a third-party delivery service. Amazon argued that it wasn't the driver's employer and should not be responsible for their conduct. However, during the trial, the extent of control Amazon exerted over the driver's work was revealed. Jurors learned that Amazon, through its app and digital tools, dictated the driver's routes, schedules and delivery methods. The jury found that this digital "control" was equivalent to the control typically exerted by employers, making Amazon liable under agency law.

Significantly, the jury also found Amazon responsible for failing to properly train the driver, further compounding their liability. This verdict has profound ramifications for gig-economy businesses that claim workers are independent while simultaneously directing nearly every aspect of their work through technology. Companies cannot rely on the independent contractor label when they exert this level of digital control.