Amazon can pay $61.7 million to Flex drivers to settle allegations of stolen suggestions, after an extensive investigation by the US Federal Trade Commission. The determine represents the whole quantity of allegedly withheld suggestions over the two-and-a-half years that Amazon Flex’s controversial base pay system was in place.
The follow of utilizing tricks to pay drivers base salaries generated vital outcry when it was revealed by The Los Angeles Times’s Johana Bhuiyan in February 2019. Amazon initially defended the follow, saying drivers nonetheless obtained one hundred pc of the ideas despatched by clients, even in cases when these suggestions displaced base pay that will in any other case have been offered by Amazon.
In line with the FTC criticism, Amazon used this ambiguity to recruit drivers with guarantees of excessive base wages and the potential for vital suggestions — then pad its personal backside line through the use of tipped revenue to make up a lot of the paid base wage.
Amazon discontinued the follow in August of 2019, saying “Amazon will all the time contribute not less than $15 per scheduled hour to driver pay, and infrequently extra, primarily based on location and demand.”
“In complete, Amazon stole practically one-third of drivers’ tricks to pad its personal backside line,” stated Commissioner Rohit Chopra in a statement, accusing Amazon of “increasing its enterprise empire by dishonest its employees.”