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posted by Fnord666 on Sunday August 25 2019, @11:21PM   Printer-friendly
from the people-tip-Amazon-drivers? dept.

Submitted via IRC for SoyCow1984

Amazon will no longer use drivers' tips to cover their base pay

Amazon has pledged to be more transparent and to tell its its Flex delivery drivers how much they actually earn, according to an email sent to contractors as seen by the LA Times. Perhaps more importantly, the e-commerce giant will no longer dip into drivers' tips to cover their base pay. LA Times reported earlier this year that the company used drivers' supplemental earnings to fulfill the $18-to-$25-per-hour base pay they're guaranteed.

The delivery drivers weren't aware of the practice due to the lack of transparency. They weren't told how much of the money they get came from tips, so some of them had to experiment by ordering items themselves to figure out what was going on. Going forward, based on Amazon's email, the company will start sending them a fare breakdown for their shift, showing how much their base pay is and how much tips they got.

"While earnings vary by region and block, with the change to Amazon's minimum contribution, we expect nationwide average earnings for these blocks to increase to more than $27 per hour," the email reportedly read.

This is similar to DoorDash, who was recently called out for using driver's tips to fulfill the minimum wage that the company guaranteed.


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  • (Score: 0) by Anonymous Coward on Monday August 26 2019, @03:44AM (2 children)

    by Anonymous Coward on Monday August 26 2019, @03:44AM (#885494)

    The law techically *DOES* require taxes paid on all those 'gifts' you mentioned.

    It just happens that the majority of them are so priced that the paperwork to do so has never been feasible, and if nobody tells, the tax men don't know. Expect to see it go the way of automated speed ticketing in the near future. They will slowly start analyzing purchases and gifts and cracking down even on the lower priced ones.

    As it is right now if you get a gift over a hundred dollars that isn't a consumable, make sure you check state and federal tax regulations to ensure you don't need to report it and pay taxes on it. The exact tax involved varies by jurisdiction when applicable.

  • (Score: 0) by Anonymous Coward on Monday August 26 2019, @08:49AM

    by Anonymous Coward on Monday August 26 2019, @08:49AM (#885575)

    Geez, some "loved one" could get me all snared up with the feds by gifting me something I didn't want that much anyway. Maybe if the Government brings it up, maybe it will put a damper on all this holiday spending, where someone buys a bunch of crap for me, then I feel I have to reciprocate in kind.

    If the merchants start yelling "Grinch", we can show photos of the politicians who failed to roll back that law. It'd be so cool to hear a politician erupt "Vote for Me! I'll Fight for You!", Followed by howls of laughter, cat-calls, and Bronx Cheers.

  • (Score: 3, Informative) by All Your Lawn Are Belong To Us on Monday August 26 2019, @02:48PM

    by All Your Lawn Are Belong To Us (6553) on Monday August 26 2019, @02:48PM (#885654) Journal

    Actually, the tax men have the *entire database of what everyone pays* and can easily run searches for outliers. I know many bartenders whose operative practice is report everything normal lest one shows up as a blip on the audit radar. A bartender who says "0 tips!" is begging for an audit *** unless every other bartender who's worked in that location report 0 and/or you can solidly prove there's a no-tip policy ***.

    You don't have to pay what you earned. You had better pay within some degrees of standard deviation what everyone else does.

    --
    This sig for rent.