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| Flex Drivers Make $ 61 Million From Amazon |
After a thorough investigation by the US Federal Trade Commission, Amazon agreed to pay $ 61.7 million to Flex drivers to resolve the alleged stolen tip.
This number represents the total number of tips that were allegedly withheld within two and a half years of the controversial main push system, Flex, going into effect.
Amazon has also approved new restrictions on providing payroll information to drivers.
"Overall, Amazon stole nearly a third of the drivers' advice and accused Amazon of growing its business by deceiving workers. Empire," Federal Trade Commission Commissioner Rohit Chopra said in a statement.
Amazon has rejected allegations that its pay structure has been stolen or unclear. A company representative said: While we do not think the method for reporting driver wages is unclear, we clarified it in 2019.
The standard variable propulsion system was introduced at the end of 2016 and verified according to the February 2019 report.
Amazon initially defended this approach, claiming that the driver would get 100% of the tip the customer sends even if the tip replaces the base salary that Amazon could have provided.
According to the FTC's complaint, Amazon used this ambiguous attitude to hire drivers who promised high base wages and high allowances.
Workers were told that they would keep 100% of the tip and guarantee a base wage of $ 18 to $ 25 an hour.
The driver has not been informed that tips are sometimes used to pay the base price, resulting in a portion of the payment being transferred to Amazon instead of the driver.
“After the change, Amazon received complaints from hundreds of drivers because when their overall profits fell, drivers began to doubt,” the official said in an official statement.
She added, "The complaining driver received a fake email claiming that the company continued to tip drivers at 100%."
Amazon became aware of an investigation by the Federal Trade Commission in May 2019 when the commission released a civil investigation requesting registrations related to the Flex program, and Amazon terminated the law in August 2019.
Amazon sales reached $ 11.6 billion in 2019, and the Flex plan is only a small part of the company's business.
It's important to note that the regulations only include driver withheld money because the FTC has no power to impose fines on companies that break the law.