The Federal Trade Commission will return [PDF] US$60 million to over 140,000 drivers for Amazon that the company illegally withheld.
The FTC sued Amazon and subsidiary Amazon Logistics, claiming the company didn’t fully pay tips drivers earned through Amazon Flex. Amazon agreed to settle and give the employees the money. The settlement also stops Amazon from misrepresenting any driver’s likely income or rate of pay, how much of their tips will be paid to them, as well as whether the amount paid by a customer is a tip.
The FTC will be sending 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.