In an investigation that began in 2019, the Federal Trade Commission has ordered Amazon to pay $61.7 million to its contractors.
Amazon is accused of using the tips of their contractors to compensate for their regular hourly pay. Amazon promised an hourly pay of $18-$25, but was paying them significantly less and using the tips of customers to make up for it. After hundreds of complaints from Amazon contractors, Amazon continued the practice while ensuring them that they were receiving 100% of their tip money along with their regular hourly pay.
After an investigation by the FTC began, Amazon changed their payment practices to reflect what contractor’s made in tips and hourly pay. The FTC’s decision to order Amazon to pay the $61.7 settlement comes when its Founder and CEO, Jeff Bezos, is stepping down and being replaced by Andy Jassy, Amazon’s CEO of Amazon Web Services.