Amazon Sued, Accused Of Keeping Tips Away From Delivery Drivers

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On Wednesday, the attorney general’s office in the District of Columbia filed a lawsuit against Amazon.com Inc. and its Amazon Logistics subsidiary. They are accused of keeping tips away from delivery drivers.

Attorney Karl Racine stated that the company “tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its labor costs and increase profits.” It was alleged that this was done through its Amazon Flex Service.

Amazon Flex drivers operate their own cars to deliver products and groceries. These are purchased through programs such as Prime Now and Amazon Fresh. The allegation is that Amazon didn’t give their drivers their tips and continued the practice for two and a half years. It’s stated that the practice stopped once the company was aware that they were being investigated in 2019.

The lawsuit that was filed is looking for penalties for each violation and a court ruling to ban Amazon from restarting the practice.



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