Amazon Sued For Allegedly Stealing $1M+ In Delivery Worker Tips

An Amazon.com Inc. delivery driver scans bags of groceries while loading a vehicle outside of a distribution facility on February 2, 2021 in Redondo Beach, California. - Jeff Bezos said February 1, 2021, he would give up his role as chief executive of Amazon later this year as the tech and e-commerce giant reported a surge in profit and revenue in the holiday quarter. The announcement came as Amazon reported a blowout holiday quarter with profits more than doubling to $7.2 billion and revenue jumping 44 percent to $125.6 billion. (Photo by Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)

At a glance

  • Amazon is being sued by Washington, D.C. Attorney General Karl Racine for allegedly stealing more than $1 million in tips from delivery drivers to subsidize its own labor costs.
  • The suit claims that between 2016 and 2019, “Amazon misled consumers to believe that they were paying tips directly to their delivery drivers through Amazon’s online delivery portal, and that those tips were increasing driver pay by the consumer-designated amounts.”
  • The company is instead accused of using the funds “to pay a portion of the amounts Amazon had already promised its drivers—thereby subsidizing Amazon’s labor costs.”

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