Amazon Ordered to Pay Fine for Withholding Tips From Delivery Drivers - Gig Workers

Amazon Ordered to Pay Fine for Withholding Tips From Delivery Drivers - Gig Workers

Amazon has finally agreed to pay $62 million to the Federal Trade Commission (FTC) to settle the charges related to the withholding of tips that were supposed to go to its flex/temp gig delivery drivers over a period of two-and-a-half years.

As per the FTC announcement Amazon had promised its gig economy delivery drivers that they would receive 100 percent of all the tips that they would receive from the customers but almost 4 years ago in 2016, the e-commerce giant secretly reduced the delivery wages of $18 to $25 per hour and 100 percent of all the tips that totaled more than $61 million dollars. Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate which resulted in the contract/gig workers receiving less overall take-home wage.

The gig workers that were working for the amazon delivery business were kept in the dark as this new shift in policy was not disclosed to them but after some time the drivers started noticing the reductions in their compensation started to complain. Amazon canceled this policy after becoming aware that they are getting investigated by the FTC. Subsequently, Amazon settled with FTC but without accepting any wrongdoing.

Testimonials

Cookies

This website uses cookies to ensure you get the best experience on our website. Cookie Policy

Accept