Amazon to pay $3.95 million settlement over stolen tips for DC delivery workers
WASHINGTON, D.C. - A recent lawsuit in D.C. over stolen tips intended for delivery workers has been settled for $3.95 million.
AG Brian L. Schwalb shared the news on Friday morning. The lawsuit alleged that Amazon misled D.C. consumers by assuring them that 100% of tips would go to Amazon Flex delivery drivers when, in fact, a large portion of the tips were diverted to reduce Amazon’s labor costs and increase profits.
Amazon drivers have already been reimbursed for the wages they were denied, as a result of a previous lawsuit, according to Schwalb's office.
The settlement now requires the company to pay additional financial penalties, cover the cost of OAG’s litigation, and change its business practices to clearly disclose how tips are being used.
"When companies mislead customers to boost their profits by stealing tips intended for their workers, they are cheating their consumers, their employees, and their competitors who play by the rules," said Attorney General Schwalb.
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"It’s not sufficient, after being caught, to simply give back the ill-gotten gains. Rather, there must be meaningful consequences to deter misconduct from happening in the first place. Especially when living expenses are harder and harder to afford, my office will continue to ensure that hardworking District residents receive every penny of their earnings and consumers have confidence that they are not being misled."