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FTC settlement with Amazon gives improperly withheld tips back to drivers

Posted at 11:43 AM, Jun 14, 2021

LANSING, Mich. — Michigan Attorney General Dana Nessel wants any Michigander who worked as an Amazon Flex driver to know about a settlement requiring Amazon to pay back tips that had been withheld from drivers.

The Federal Trade Commission announced the settlement late last week with Amazon for the return of unpaid tips to its Amazon Flex drivers from late 2016 through August 2019.

Amazon will return nearly $62 million in improperly withheld tips from its Flex drivers, according to the agreement.

In addition, Amazon has agreed not to change the way drivers receive tips without first obtaining drivers’ express informed consent.

The agreement will be valid for 20 years.

Amazon Flex operated in and around Detroit, Grand Rapids, Kalamazoo, Lansing and Saginaw, according to its website.

Michigan drivers who delivered packages during the settlement’s time frame will not need to take any action to receive their unpaid tips, as the FTC is refunding amounts based on information in Amazon’s records.

“I commend the FTC for taking firm action in favor of our workers against one of the country’s most powerful companies,” Nessel said. “It’s unlawful for any employer to withhold a worker’s wages or tips without their express written consent. This agreement is a victory for our Michigan workers, and I am pleased Amazon is cooperating with the FTC to make our workers whole.”