Amazon drivers handed $60m in tips that were withheld by company - after action by US watchdog

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Amazon drivers are being given $60m (£44m) in tips that were illegally withheld by the online retailer, America's consumer watchdog has said

"But according to the FTC, from late 2016 through August 2019, Amazon illegally pocketed a big percentage of those tips."

The company agreed earlier this year to settle the case and hand over the money it had withheld, the FTC said.Amazon last week reported a fall in quarterly profits partly due to global supply chain problemsThose who had more than $5 withheld by Amazon will receive the full amount of their withheld tips.in a separate case in the UK

, it was revealed that law firm Leigh Day had launched a claim on behalf of Amazon delivery drivers over their employment rights that it said could result in millions of pounds in compensation. The lawyers said drivers employed via third-party"delivery service partners" are classified as self-employed, meaning they do not benefit from rights such as holiday pay and the minimum wage.

Last week, Amazon reported a 50% fall in third quarter profits to $3.16bn as it boosted pay to attract workers in a tough labour market and grappled with global

 

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