Feb 2, 2021

Amazon settles claims it pocketed delivery drivers' tips

Amazon has agreed to settle allegations it cheated some drivers out of tips from customers for more than two years. Flex drivers, who use personal vehicles to deliver for Amazon, had received hourly rates between $18-$25 and were promised 100% of tips. In late 2016 Amazon "Secretly reduced its own contribution to drivers' pay," according to the FTC. "Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate." The FTC said Amazon also misled customers by telling them that drivers received 100% of any tip. "In total, Amazon stole nearly one-third of drivers' tips to pad its own bottom line," Commissioner Rohit Chopra, a Democrat, said in a statement.

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