The Federal Trade Commission said Tuesday it is sending $60 million to Amazon Flex drivers under a settlement announced earlier this year over charges the company illegally withheld tips from drivers between 2016 and 2019.
Amazon Flex drivers are independent contractors who deliver goods and groceries for programs like Prime and AmazonFresh. More than 140,000 drivers will receive an average $422, while one driver is set to receive more than $28,000, the FTC said in a news release. Nearly 20,000 drivers will be getting more than $600.
Under the settlement, Amazon.com Inc.
AMZN,
also is prohibited from from “misrepresenting any driver’s likely income or rate of pay, how much of their tips will be paid to them, as well as whether the amount paid by a customer is a tip,” according to the FTC. In addition, the company must not change how tips are used as compensation without drivers’ consent.
Last week, the FTC sent notices to Amazon and more than 1,100 companies, including Uber Technologies Inc.
UBER,
Lyft Inc.
LYFT,
DoorDash Inc.
DASH,
and other gig companies that use drivers and workers they consider independent contractors, warning them about making misleading earnings promises.
Amazon Flex drivers must cash or deposit checks they receive by Jan. 7, 2022, according to the FTC.
Amazon has not returned a request for comment.
This post was originally published on Market Watch
