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Amazon Shorted Flex Drivers $61.7 Million in Tips, FTC Says

Feb. 2, 2021, 3:50 PM

Amazon.com Inc. will pay $61.7 million to settle a Federal Trade Commission finding that the company withheld tips meant for Flex delivery drivers for more than two years.

Despite pledging to drivers and shoppers that Flex drivers would receive 100% of the value of tips, the world’s largest online retailer used a portion of the gratuities to pay the basic hourly rate for the on-demand package delivery program, the regulator said on Tuesday.

Flex, launched in 2015, invites independent contractors to deliver packages from their own vehicles. Amazon promised drivers a pay rate of $18 to $25 an hour, ...

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