AG Nessel’s Payroll Fraud Enforcement Unit announces Amazon Flex Settlement

The Federal Trade Commission (FTC) 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.

The agreement provides that Amazon will return nearly $62 million it improperly withheld from its Flex drivers. 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 operates in and around Detroit, Grand Rapids, Kalamazoo, Lansing, and Saginaw, according to its website. Michigan drivers who delivered packages for Amazon Flex from late 2016 through August 2019 are not required to take any action to receive their unpaid tips.  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 in a statement. “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.”

If you worked during this time period, AG Nessel recommends Michiganders keep an eye out for correspondence from the FTC as it may include a refund of  improperly withheld tips.

You can stay updated on this and other matters by signing up for emails from the FTC’s general distribution list.