Amazon Illegally Withheld Tips from Flex Drivers, Class Action Claims

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Amazon.com and Amazon Logistics face a proposed class action that alleges the companies have unlawfully failed to pay Flex drivers the entirety of tips left by customers, and instead retained a portion of the money. 

The seven-page breach-of-contract lawsuit comes on the heels of the announcement of a $61.7 million settlement between Amazon and the Federal Trade Commission, who alleged in a complaint that the retail giant failed to pay drivers the full amount of tips they received from customers over a two-and-a-half-year period. 

“The $61.7 million represents the full amount that Amazon allegedly withheld from drivers and will be used by the FTC to compensate the drivers,” the February 2, 2021 announcement reads.

The case, filed in state superior court, additionally alleges Amazon has “breached its contractual obligation” to pay promised tips to drivers, and has unjustly enriched itself in the process, in violation of Massachusetts law. 

Through Amazon’s Flex delivery service, customers pay drivers to deliver products to them by way of their own personal vehicles, the suit says. On some Amazon Flex transactions, customers may add tips for drivers, per the case. 

Amazon, the lawsuit says, has “consistently represented to both consumers and drivers that all tips paid by customers are paid in full to the drivers.” In truth, however, Amazon has failed to live up to this representation, the suit alleges. According to the case, Amazon began retaining portions of drivers’ tips around 2016 and continued doing so until approximately August 2019, around the time the FTC got involved.

“Amazon only changed this practice after the Federal Trade Commission began investigating their tip retention practices,” the case relays.

The lawsuit looks to represent all individuals who have been Amazon Flex delivery drivers during the statutory periods relevant to the claims laid out in the complaint.

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