Amazon Flex delivery drivers to receive government payout

More than 140,000 US Amazon Flex delivery drivers are to receive a combined payout of $60 million in withheld tips after a successful legal action by the Federal Trade Commission (FTC).

The tips were illegally withheld by Amazon and its subsidiary Amazon Logistics between 2016 and 2019. The FTC sued the online giant earlier this year, saying it had failed to fully pay the tips that the drivers on the Amazon Flex programme had earned.

These drivers deliver goods and groceries ordered through Prime Now and Amazon Fresh amongst others. According to the FTC, the company kept drivers’ tips over a two and a half year period, only stopping when it learned of the federal investigation in 2019. In February, Amazon agreed to settle and to fully repay all the monies owed.

The FTC is to send 139,507 cheques and 1,621 PayPal payments to the drivers involved. Though some will receive as little as $5, the largest payment top a single driver is more than $28,000 and the average is around $422.

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