^{Photo: The Guardian}

Amazon has reached a settlement with U.S. labor regulators following allegations that it penalized employees who participated in strikes, marking another high-profile development in the company’s ongoing labor relations challenges.

The agreement, reached with the National Labor Relations Board (NLRB), resolves complaints brought forward by the International Brotherhood of Teamsters and a group of workers across multiple states. At the center of the dispute were claims that Amazon improperly deducted unpaid time off (UPT) from employees who walked off the job, effectively putting some at risk of termination.

Under the terms of the settlement, Amazon will restore UPT hours to more than 100 affected employees and commit to ensuring that workers can participate in strikes without facing similar penalties in the future. The company will also post formal notices in break rooms across its extensive U.S. network—covering more than 1,300 facilities—informing employees of their rights to organize and engage in protected labor activities.

While Amazon agreed to the resolution, it did not admit to any wrongdoing. A company spokesperson stated that the decision was made to move forward and maintain focus on improving workplace conditions, rather than prolonging legal disputes.

The case highlights ongoing tensions surrounding Amazon’s attendance policies. The company’s UPT system allows frontline workers a limited number of unpaid hours for emergencies or unexpected absences. However, exceeding the allocated balance can lead to disciplinary action, including termination. According to the NLRB, deducting UPT during strikes may have created a coercive environment by discouraging employees from exercising legally protected rights.

The complaint referenced multiple incidents dating back to 2022, where workers who participated in organized walkouts saw their UPT balances reduced, in some cases dropping into negative territory. This raised fears among employees that participating in labor actions could cost them their jobs.

The dispute is part of a broader effort by the Teamsters to unionize Amazon’s vast workforce. Since launching a dedicated Amazon division in 2021, the union claims to represent nearly 10,000 workers across warehouses and delivery operations, though Amazon disputes that figure. Organizing efforts have intensified in recent years, with strikes and walkouts occurring at several facilities, including coordinated actions at seven U.S. delivery hubs in late 2024.

Despite these efforts, union success within Amazon remains limited. Only a handful of locations, including a warehouse in Staten Island and a Whole Foods store in Philadelphia, have successfully unionized. Still, pressure continues to build from labor groups, policymakers, and regulators scrutinizing the company’s workplace practices.

The NLRB has previously accused Amazon of maintaining overly broad attendance policies that could discourage employees from engaging in protected activities such as strikes. These findings have contributed to a series of legal and regulatory challenges for the company as it navigates the evolving landscape of labor rights in the U.S.

This latest settlement represents a significant step in clarifying employee protections within Amazon’s operations. By reinstating benefits and formally acknowledging workers’ rights to organize, the agreement may influence how large employers approach labor relations in an era of increasing union activity.