{"id":3134,"date":"2021-02-05T09:44:05","date_gmt":"2021-02-05T14:44:05","guid":{"rendered":"https:\/\/www.fslawfirm.com\/blog\/?p=3134"},"modified":"2021-02-05T09:44:07","modified_gmt":"2021-02-05T14:44:07","slug":"amazon-to-pay-61-7m-to-drivers-over-claims-of-stolen-tips","status":"publish","type":"post","link":"https:\/\/www.fslawfirm.com\/blog\/2021\/02\/amazon-to-pay-61-7m-to-drivers-over-claims-of-stolen-tips\/","title":{"rendered":"Amazon To Pay $61.7M to Drivers Over Claims of Stolen Tips"},"content":{"rendered":"\n<p>Amazon was\u00a0recently\u00a0accused of\u00a0significantly\u00a0shorting\u00a0its\u00a0essential\u00a0workers on <a href=\"https:\/\/www.law360.com\/articles\/1351195\/amazon-pays-61-7m-to-end-ftc-claims-it-stole-driver-tips\" target=\"_blank\" rel=\"noreferrer noopener\">tips<\/a> and has\u00a0now\u00a0agreed to settle these\u00a0claims for over $60 million.\u00a0The Federal Trade Commission (\u201cFTC\u201d), a federal agency with a dual mission to protect consumers and promote\u00a0competition in our dynamic economy,\u00a0filed a complaint against the\u00a0online retailer\u00a0in late 2019\u00a0after numerous complaints from workers. The complaint alleged Amazon\u00a0had several policies in place dating back to 2015 that\u00a0misled workers in the Amazon Flex,\u00a0AmazonFresh, and Prime Now programs\u00a0into believing\u00a0they would\u00a0be\u00a0receiving a significantly higher minimum wage\u00a0as well as tips.\u00a0<\/p>\n\n\n\n<p>These drivers\u00a0claimed\u00a0that they were baited into the Flex programs that promised pay at $18-25 per hour\u00a0plus tips\u00a0but by late 2016 the company has changed its tune. Amazon had allegedly\u00a0begun secretly reducing\u00a0its pay to drivers as well as retaining their\u00a0tips. The drivers began to make formal complaints to the online retailer\u00a0who\u00a0assured them\u00a0and\u00a0their customers that 100 percent of gratuities were going to drivers when they in fact were not.\u00a0It\u00a0wasn\u2019t\u00a0until late 2019 that this scheme was\u00a0exposed and dropped after the FTC began their investigation. By this point, the\u00a0drivers alleged the\u00a0damage had been done\u00a0to\u00a0workers\u00a0who had flocked to these Flex programs from other\u00a0competitors with\u00a0promises of better pay.\u00a0The $61.7 million payout will be distributed to\u00a0drivers who had their tips\u00a0misappropriated by the\u00a0online retailer for more than two years. Additionally, Amazon will have to be more transparent\u00a0with\u00a0its workers regarding their rate\u00a0of pay, including what percentage of tips\u00a0they\u2019ll\u00a0be receiving from customers going forward.<\/p>\n\n\n\n<p>Delivery drivers often face\u00a0several forms of wage violations. From unpaid tips to unpaid overtime, the amount of hard-earned money\u00a0wrongfully taken from these essential workers\u00a0is\u00a0far from uncommon.\u00a0However, many states, including New York, already have laws on the books that make it illegal for owners of a company to keep tips meant for its workers.\u00a0Other\u00a0laws\u00a0relating to the payment of wages give protection to workers \u2013 but can be complicated.\u00a0Amazon currently has\u00a0an additional wage case pending that alleges they\u00a0misclassified\u00a0drivers in New Jersey\u00a0as independent contractors failing to pay them overtime when working over 40 hours per week.\u00a0If you are an essential worker\u00a0making deliveries\u00a0and have questions or concerns regarding your pay structure, it may be a good idea to speak to an employment attorney\u00a0to see if you may have claim for owed wages. Our firm, Fitapelli &amp; Schaffer, LLP,\u00a0specializes in workers\u2019\u00a0rights\u00a0and\u00a0offers a\u00a0free and confidential phone consultation. Call us now at (212) 300-0375 or visit our website\u00a0<strong><a href=\"http:\/\/Fslawfirm.com\">here<\/a><\/strong>\u00a0for additional information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\nAmazon was\u00a0recently\u00a0accused of\u00a0significantly\u00a0shorting\u00a0its\u00a0essential\u00a0workers on tips and has\u00a0now\u00a0agreed to settle these\u00a0claims for over $60 million.\u00a0The Federal Trade Commission (\u201cFTC\u201d), a federal agency with a dual mission to protect consumers and promote\u00a0competition in our dynamic economy,\u00a0filed a complaint against the\u00a0online retailer\u00a0in late 2019\u00a0after numerous complaints from workers. The complaint alleged Amazon\u00a0had several policies in place dating back to 2015 that\u00a0misled workers in the Amazon Flex,\u00a0AmazonFresh, and Prime Now programs\u00a0into believing\u00a0they would\u00a0be\u00a0receiving a significantly higher minimum wage\u00a0as well as tips.\u00a0<\/p>\n<p><br ...\n<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-3134","post","type-post","status-publish","format-standard","hentry","category-employment-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Amazon To Pay $61.7M to Drivers Over Claims of Stolen Tips<\/title>\n<meta name=\"description\" content=\"Learn more about how Amazon 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