Federal Trade Commission Orders Amazon To Pay $60 Million In Illegally Withheld Tips To Over 140,000 Workers - The Shade Room

Federal Trade Commission Orders Amazon To Pay $60 Million In Illegally Withheld Tips To Over 140,000 Workers

#Roommates, Amazon has just been ordered to pay up in a major way following a recent decision by the Federal Trade Commission. According to new reports, Amazon has officially been required to pay $60 million in illegally withheld tips to over 140,000 workers.

@Reuters reports, between 2016 and 2019 Amazon illegally withheld tips from more than 140,000 drivers—and now the massively successful company has been ordered to pay them $60 million in funds they are owed based on a decision from the Federal Trade Commission. Earlier this year, the FTC filed an official lawsuit against Amazon and its subsidiary company Amazon Logistics, due to allegations that the company did not adequately pay tips to drivers in its Amazon Flex program.

Additionally, the FTC stated that it will officially send 139,507 checks and 1,621 PayPal payments to all Amazon Flex drivers who are owed back tips. For any driver that had over $5 withheld in tips from the company, they will receive the full amount they are owed. While the average amount of payments for Amazon drivers is estimated to be around $422, one company driver is set to receive a single payment of more than $28,000.

Back in February, Amazon formally agreed to settle the lawsuit and surrender all the money it purposely withheld from its workers—which reportedly occurred over a two-and-half year time-frame that is said to have only stopped when the company was alerted to the FTC’s investigation.

You’ll recall that Amazon Flex delivers goods and groceries ordered through programs such as Prime, Now and Fresh.

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