Current Events > Amazon fined for stealing tens of millions in tips from its delivery drivers

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Shablagoo
02/14/21 5:18:55 PM
#1:


Amazon agreed on Tuesday to pay $62 million to the Federal Trade Commission to settle charges that it withheld tips to delivery drivers over a two-and-a-half year period, in a case that highlights the federal governments increased interest in gig-economy workers.


The F.T.C. said in an announcementthat Amazon had promised its Flex delivery drivers that they would receive 100 percent of all customers tips. But starting in 2016, the F.T.C. said, Amazon secretly lowered the hourly delivery wages, which were advertised at $18 to $25, and tried to mask the smaller wages by using customer tips to cover for the smaller hourly pay. The net effect was that the contract workers received smaller overall take-home pay, the agency said.


The practice wasnt disclosed to drivers but the Flex drivers noticed the compensation reductions and began to complain. Amazon stopped the practice in 2019, after it became aware of the F.T.C.s investigation, the agency said. The company settled without admitting wrongdoing.

https://web.archive.org/web/20210202201351/https://www.nytimes.com/2021/02/02/business/amazon-tips.html

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Questionmarktarius
02/14/21 5:19:20 PM
#2:


You're supposed to tip the amazon driver?
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Perfectinsanity
02/14/21 5:21:13 PM
#3:


I don't believe that anyone has ever tipped an Amazon driver

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AzNDarkSamurai
02/14/21 5:21:52 PM
#4:


Questionmarktarius posted...
You're supposed to tip the amazon driver?

yeah the FLEX ones that deliver groceries

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Shablagoo
02/14/21 5:22:08 PM
#5:


Questionmarktarius posted...
You're supposed to tip the amazon driver?

This is their Flex drivers, basically Amazons answer to DoorDash or other delivery apps. Though theyll also deliver groceries, gifts, and stuff not just take-out.

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Kingbuffet
02/14/21 5:25:52 PM
#6:


Such an evil corporation
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Kingbuffet
02/14/21 5:27:12 PM
#7:


if you ever ordered Fresh then you yes you should tip your driver
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Trumble
02/15/21 12:38:51 PM
#8:


As a non-American it's still really weird to see tipping considered a "you must do this" rather than a "bonus for really good service".

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Jagr_68
02/15/21 12:41:31 PM
#9:


Kingbuffet posted...
if you ever ordered Fresh then you yes you should tip your driver

Never ordered groceries before but this makes sense. I would've thought the tip would be displayed at checkout?

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kingdrake2
02/15/21 12:43:24 PM
#10:


Kingbuffet posted...
if you ever ordered Fresh then you yes you should tip your driver


i can agree with that. at least 10% or more of the order. cant be a cheapie.
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Tenlaar
02/15/21 12:43:35 PM
#11:


That's not "stealing tips," it's factoring tips into pay. We don't consider it "stealing tips" when restaurants pay wait staff less because they get tips.
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#12
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Robot2600
02/15/21 12:44:09 PM
#13:


Yea, essentially they lowered the workers' pay when they saw they made a lot of tips. The workers were still getting 18-25 dollars, but with tips should have been making 25-30 dollars (or something like that).
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BilalPowell
02/15/21 12:44:32 PM
#14:


Amazon has delivery drivers? Thought they just use FedEx or UPS.

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Axiom
02/15/21 12:45:21 PM
#15:


BilalPowell posted...
Amazon has delivery drivers? Thought they just use FedEx or UPS.
Lol
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kingdrake2
02/15/21 12:45:40 PM
#16:


BilalPowell posted...
Amazon has delivery drivers?


yes. it's a blue truck they drop stuff off like UPS.
i saw one once while walking my dog.

may find em in larger city's more often.
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Aki_Sora
02/15/21 12:50:06 PM
#17:


Tipping culture need to die

Just pay the minimum wage
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Axiom
02/15/21 12:51:47 PM
#18:


Aki_Sora posted...
Tipping culture need to die

Just pay the minimum wage
Lmao. Tipping culture needs to die and just pay minimum wage in the same post. I tip my hat to you sir for the dumbest post in a sea of stupidity
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Shablagoo
02/15/21 12:52:17 PM
#19:


Tenlaar posted...
That's not "stealing tips," it's factoring tips into pay. We don't consider it "stealing tips" when restaurants pay wait staff less because they get tips.

K well it wasnt what was agreed upon in this relationship between Amazon and its drivers which is why the Federal Trade Commission stepped in.

In other words, shut the fuck up.

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BobLoblaw_
02/15/21 12:54:27 PM
#20:


so is that fine money going to the workers?

and is anyone going to prison?

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ImmatureContent
02/15/21 12:54:34 PM
#21:


Amazon does an incredibly shitty thing and CE is more focused on talking about tipping practices. smh

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Aki_Sora
02/15/21 12:55:02 PM
#22:


Axiom posted...

Lmao. Tipping culture needs to die and just pay minimum wage in the same post. I tip my hat to you sir for the dumbest post in a sea of stupidity

Why it is dumb?

I non-American I live in asia country that don't have does shitty tips culture.

All company should paid their worker salary with minimum wage
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argonautweakend
02/15/21 12:58:32 PM
#23:


If you pay tipped workers a minimum wage salary in the US, and get rid of tips, most tipped workers will just be making less money, in some cases FAR less money, depending on where you live and the minimum wage in that area.

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Axiom
02/15/21 12:58:57 PM
#24:


Because paying minimum wage is the reason they need tips. There is no expense account for the gas or the wear caused on the owners car and that shit adds up quick which is where tips come in
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Aki_Sora
02/15/21 1:01:32 PM
#25:


argonautweakend posted...
If you pay tipped workers a minimum wage salary in the US, and get rid of tips, most tipped workers will just be making less money, in some cases FAR less money, depending on where you live and the minimum wage in that area.


Axiom posted...
Because paying minimum wage is the reason they need tips. There is no expense account for the gas or the wear caused on the owners car and that shit adds up quick which is where tips come in

So America have shitty minimum wage that it really need tips to pay their worker
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Shablagoo
02/15/21 1:05:13 PM
#26:


Aki_Sora posted...
So America have shitty minimum wage that it really need tips money to pay their worker.

I thought America first world country have better minimum wage than my country but it not

Yeah minimum wage in America is not a livable wage. It is about 30% of what it should be.

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Aki_Sora
02/15/21 1:06:34 PM
#27:


Shablagoo posted...


Yeah minimum wage in America is not a livable wage. It is about 30% of what it should be.

Biden should rise the minimum wage paid
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Tenlaar
02/15/21 1:06:44 PM
#28:


Shablagoo posted...
K well it wasnt what was agreed upon in this relationship between Amazon and its drivers which is why the Federal Trade Commission stepped in.

In other words, shut the fuck up.
No, because what they got in trouble for was not stealing tips but changing things to factor tips into pay without giving the drivers a chance to agree to it. You shut the fuck up.
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KStateKing17
02/15/21 1:09:29 PM
#29:


Aki_Sora posted...
So America have shitty minimum wage that it really need tips money to pay their worker.

I thought America first world country have better minimum wage than my country but it not
In many cases tipped workers make less than minimum wage from their employer. The tips are what the workers try for and if they don't make the equivalent of the minimum wage from tips, the employer usually provides the difference.

One of my previous jobs was in a restaurant. I got paid over $2 an hour by the restaurant and made the rest in tips.

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Shablagoo
02/15/21 1:10:15 PM
#30:


Tenlaar posted...
No, because what they got in trouble for was not stealing tips but changing things to factor tips into pay without giving the drivers a chance to agree to it. You shut the fuck up.

Which is what I just said. Learn to read and shut the fuck up.

Aki_Sora posted...
Biden should rise the minimum wage paid

Agreed, it should be close to $25. Right now the big number being floated around is $15, but its not nearly enough. Well take it over nothing, though, of course.

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berlyman101
02/15/21 1:13:42 PM
#31:


I don't get why we should have to tip Amazon's delivery drivers but not UPS. Amazon should just pay them more and charge us the difference. Same for every tipping job, actually.

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MuayThai85
02/15/21 1:16:39 PM
#32:


Shablagoo posted...
Which is what I just said. Learn to read and shut the fuck up.

Agreed, it should be close to $25. Right now the big number being floated around is $15, but its not nearly enough. Well take it over nothing, though, of course.

Lol what the fuck? $25/hout should be minimum wage? How much have you smoked today. Why would someone become a paramedic for example when they could make just as much working fast food or retail?

I work as a driver/mover right now. Do you think I'd be doing this job if I made the same amount as a high schooler working at McDonald's?

If the minimum wage is increased to $25/hour, then other more specialized jobs would need to increase salaries. Then prices rise and that $25/hour is worth fuck all.

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MuayThai85
02/15/21 1:22:03 PM
#33:


berlyman101 posted...
I don't get why we should have to tip Amazon's delivery drivers but not UPS. Amazon should just pay them more and charge us the difference. Same for every tipping job, actually.
UPS isn't delivering groceries. This is about flex drivers who do regular deliveries of amazon products but also things like groceries. All while they are using their own vehicles. They need to pay for their own gas, insurance, upkeep, etc.

It's like driving for skipthedishes or doordash. If people didn't tip, you would practically make nothing because the base pay is so low. If 2 people who live 5 miles away don't tip and their orders are one after the other, you would make about $8/hour and that's before factoring in gas and everything else.

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Shablagoo
02/15/21 1:28:44 PM
#34:


MuayThai85 posted...
Lol what the fuck? $25/hout should be minimum wage? How much have you smoked today. Why would someone become a paramedic for example when they could make just as much working fast food or retail?

I work as a driver/mover right now. Do you think I'd be doing this job if I made the same amount as a high schooler working at McDonald's?

If the minimum wage is increased to $25/hour, then other more specialized jobs would need to increase salaries. Then prices rise and that $25/hour is worth fuck all.

This isnt about any of that. Its simply mathematically what the minimum wage should be based on the rise in production over the last few decades. And, minimum wage increases have not been shown to raise prices significantly.

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MuayThai85
02/15/21 1:37:39 PM
#35:


Shablagoo posted...
This isnt about any of that. Its simply mathematically what the minimum wage should be based on the rise in production over the last few decades. And, minimum wage increases have not been shown to raise prices significantly.
If said minimum wage is more than double, then yes it would because the increased buying power will lead to increased prices due to a little thing known as supply and demand.

Do you think the price of your meal at a restaurant will stay the same when said restaurants already operates on a 10% profit margin (roughly) are now paying 2.5x more for their staff (that's if you remove tipping and just add it into the price of the meal)?

A vast majority of businesses would not be able to afford to keep their doors open if the minimum wage was raised to $25...

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berlyman101
02/15/21 1:38:10 PM
#36:


all right well I'm glad Amazon got caught for this.

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Shablagoo
02/15/21 1:39:51 PM
#37:


MuayThai85 posted...
If said minimum wage is more than double, then yes it would because the increased buying power will lead to increased prices due to a little thing known as supply and demand.

Do you think the price of your meal at a restaurant will stay the same when said restaurants already operates on a 10% profit margin (roughly) are now paying 2.5x more for their staff (that's if you remove tipping and just add it into the price of the meal)?

A vast majority of businesses would not be able to afford to keep their doors open if the minimum wage was raised to $25...

The historically recorded data does not match your guess on what would happen.

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MuayThai85
02/15/21 1:52:40 PM
#38:


Shablagoo posted...
The historically recorded data does not match your guess on what would happen.

For huge corporations you'd be right about them being able to afford it but the problem is most businesses in the US are small businesses and simply couldn't afford the possible massive increase in salaries. If anything this would give more power to the corporations...

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