Retail & Consumer

Amazon drivers get $60 million in withheld tips back, FTC says

1 minute read

An independent contract delivery driver for Amazon Flex, wears a protective mask as he carries deliveries to his car near a Whole Foods Market, as spread of the coronavirus disease (COVID-19) continues, in Dublin, California, U.S., April 6, 2020. REUTERS/Shannon Stapleton/File Photo

Nov 2 (Reuters) - More than 140,000 drivers are getting $60 million in tips that were illegally withheld by Amazon (AMZN.O) between 2016 and 2019, the Federal Trade Commission said on Tuesday.

Earlier this year, the agency sued the tech giant and its subsidiary, Amazon Logistics, alleging the company failed to fully pay tips that drivers in its Amazon Flex program had earned.

Amazon Flex drivers deliver goods and groceries ordered through programs like Prime Now and Amazon Fresh. The lawsuit alleged the company kept drivers' tips over a two-and-a-half year period and stopped the practice after learning of the agency's investigation in 2019.

Amazon agreed in February to settle the case and surrender all the money it withheld, the FTC said.

The agency said it will send 139,507 checks and 1,621 PayPal payments to Amazon Flex drivers. Drivers who had more than $5 withheld by Amazon will receive the full amount of their withheld tips. The highest amount going to a single Amazon Flex driver is more than $28,000, while the average amount is $422, the FTC said.

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Reporting By Paul Grant; Editing by Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

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