DC sues Amazon for ‘stealing’ $60 million in tips from Flex drivers
District of Columbia Attorney General Karl Racine has sued Amazon for using drivers’ tips to pay their standard wages, attempting to exact a punishment that federal consumer protection agencies couldn’t.
Amazon settled with the Federal Trade Commission last year after a lawsuit asserted it had withheld more than $60 million (or about one-third of total customer tips) from Amazon Flex drivers over the course of two and a half years. But while the FTC took that money to distribute back to drivers, it had no mechanism to issue greater penalties. “Amazon has thus far escaped any other consequences,” Racine’s complaint says. The new suit asks for a DC court to assess further financial damages, aiming to “hold Amazon to full account for its...