Seattle, WA — Amazon stole $61.7 million in delivery driver tips from their Amazon Flex program that allowed drivers to deliver Amazon packages with their own vehicles.
A report from the Federal Trade Commission (FTC) detailed the shady practice by Amazon and its subsidiary, Amazon Logistics.
Amazon advertised the driving positions as $18-$25 per hour and stated that drivers would make 100 percent of their tips.
In practice, Amazon adjusted their payment process to pay drivers in a lump sum. If a driver earning $18 per hour received a $5 tip, Amazon included the tip amount in the driver’s base pay. The driver’s $5 tip made up the difference, allowing Amazon to pay only $12 per hour.
The FTC alleges that Amazon did not notify drivers when they made the switch to the new payment method in 2016.
Hundreds of people complained when they noticed an overall decrease in their paychecks from Amazon after the change. However, Amazon continued this practice until 2019, when the FTC notified the tech giant of its ongoing investigation.
Amazon now reports driver’s base pay and tips separately, so Amazon Flex drivers now know what they are actually paid.
The FTC will distribute the $61.7 million settlement to drivers wronged by Amazon’s shady business practices. The report did not detail who in the company was responsible for the decision to steal from the drivers.
This bombshell report comes after Jeff Bezos Steps Down as Amazon CEO from his leadership role, and while the company faces anti-trust accusations by both Europe and the U.S.
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