Amazon Will Pay $61.7 Million To Delivery Drivers After Withholding Tips
Amazon will pay more than $61.7 million to Flex drivers from whom it withheld the full amount of customer tips to settle a Federal Trade Commission investigation.
The settlement comes nearly two years after the Los Angeles Times first exposed that Amazon was dipping into customer tips to cover the base pay guaranteed to Flex drivers, who deliver Amazon Fresh, Prime Now and other orders.
The money will reimburse Flex drivers whose tips Amazon withheld over the last 2½ years, according to the FTC.
Until August 2019, Amazon promised Flex drivers a guaranteed minimum base pay for each order, which the e-commerce company said included 100% of customer tips.