Last Updated on 22/11/2021 by Sunaina
The Federal Trade Commission will distribute more than $60 million to Amazon Flex drivers, reflecting tip money that the commission claims was improperly withheld.
The FTC is preparing 139,501 checks and 1,621 PayPal payouts to drivers who had more than $5 in withheld gratuities, according to the official release. The most a single motorist may receive in compensation is more than $28,000, while the average payback is $422. According to the FTC, over 20,000 drivers will get payments totaling more than $600.
Drivers should get their tips by January 7th, 2022.
“THE HIGHEST BACK PAYOUT FOR A SINGLE DRIVER IS MORE THAN $28,000.”
The FTC sued Amazon earlier this year for withholding gratuities in its Flex programme between 2016 and 2019. According to the FTC’s investigation, Amazon continued to collect parts of the drivers’ tips until the agency filed its case exposing the alleged illegal activities in 2019.
In February, Daniel Kaufman, acting director of the FTC’s Bureau of Consumer Protection, stated that “rather than passing along 100 percent of consumers’ tips to drivers, as it had promised, Amazon utilised the money itself.”
Amazon Flex hires individual drivers to deliver products in their own vehicles, typically Prime Now and Amazon Fresh items. The FTC said in its February complaint that Amazon informed customers and drivers that the drivers would get 100 percent of any tips provided. This practise was put to a stop in 2016 when Amazon purportedly reduced the minimum hourly wage for drivers and made up the shortfall with tip money. According to the FTC, drivers were not warned of the change.
In February, Amazon agreed to resolve the dispute and turn up all tip money to the FTC, totalling more than $60 million. On Friday, Amazon spokesperson reported to us, ” While we disagree that the historical way we reported pay to drivers was unclear, we added additional clarity in 2019 and are pleased to put this matter behind us. Amazon Flex delivery partners play an important role in serving customers every day, which is why they earn among the best in the industry at over 25$per hour on average across the country.”