Amazon will pay $61.7 million to Flex drivers after wage theft allegations

Amazon will pay $61.7 million to Flex drivers after wage theft allegations


Illustration by Alex Castro / The Verge

Amazon will pay $61.7 million to Flex drivers to settle allegations of stolen tips, after an extensive investigation by the US Federal Trade Commission. The figure represents the total amount of allegedly withheld tips over the two and a half years that Amazon Flex’s controversial base pay system was in place.

“In total, Amazon stole nearly one-third of drivers’ tips to pad its own bottom line,” FTC Commissioner Rohit Chopra said in a statement, accusing Amazon of “expanding its business empire by cheating its workers.”

The practice of using tips to pay drivers’ base salaries generated significant outcry when it was revealed by the Los Angeles Times’ Johana Bhuiyan in February 2019. Amazon initially defended the practice, saying drivers…

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