LANSING, Mich. – Amazon has agreed to return millions of dollars in tips that were improperly withheld from Flex drivers in Michigan over the course of about three years, Attorney General Dana Nessel said.
The Federal Trade Commission said it has reached a settlement with Amazon that requires the company to return tips that went unpaid to Amazon Flex drivers from late 2016 through August 2019. Amazon Flex is a program through which drivers use their own vehicles to deliver packages.
Amazon will return nearly $62 million worth of tips that were improperly withheld from Flex drivers as part of the agreement, according to authorities.
The company has also agreed not to change the way drivers receive tips without first getting consent from those drivers, Nessel said. That agreement will be in place for 20 years.
Amazon Flex operates in and around Detroit, Grand Rapids, Kalamazoo, Lansing and Saginaw, according to the announcement.
Affected Michigan drivers who delivered for Amazon Flex don’t have to take any action to receive their tips, Nessel said.
“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.”
Workers who drove for Amazon Flex during the affected time period should keep an eye out for correspondence from the FTC, Nessel said.