Where Does a Tip To an Amazon Driver Go? In Some Cases, Toward the Driver's Base Pay (latimes.com) 117
Amazon at times dips into the tips earned by contracted delivery drivers to cover their promised pay, a Los Angeles Times review of emails and receipts reveals. From the report: Amazon guarantees third-party drivers for its Flex program a minimum of $18 to $25 per hour, but the entirety of that payment doesn't always come from the company. If Amazon's contribution doesn't reach the guaranteed wage, the e-commerce giant makes up the difference with tips from customers, according to documentation shared by five drivers. In emails to drivers, Amazon acknowledges it can use "any supplemental earnings" to meet the promised minimum should the company's own contribution fall short. "We add any supplemental earnings required to meet our commitment that delivery partners earn $18-$25 per hour," the company wrote in multiple emails reviewed by The Times. Only drivers who deliver for Amazon's grocery service or its Prime Now offering -- which brings household goods to customers in two hours or less -- can receive tips through the company's app. Amazon insists that drivers receive the entirety of their tips but declined to answer questions from The Times about whether it uses those tips to help cover the drivers' base pay.
Time to stop the tipping facade (Score:5, Insightful)
Like the old commercial "Stop 'Liking' _everything_!", it's time to stop attaching a tip to every single exchange of service in the U.S. It's a U.S. thing. It's confusing wages exactly like this article suggests. Let's just get away from tipping as a "norm" and if you feel someone did an exceptional service, then tip personally separately.
Re: Time to stop the tipping facade (Score:2, Insightful)
Exactly... it's time for a no tip movement to turn the tide of employers skimping on their duties to pay employees a proper salary.
Higher salary, no tip. The only way. I'm ready to lead the way and never tip again.
In this specific case, nobody is surprised that Amazon got caught cheating their employees. But it's probably common practice...
Re: Time to stop the tipping facade (Score:1)
Iâ(TM)ve finally put my foot down on tipping. I basically donâ(TM)t tip anywhere but restaurants. Hotel maid? Probably not. Valet? Hahaha good one. I did tip some movers $40, but they catered to my every whim. I donâ(TM)t even consider tipping 20% anymore. Mostly 15-18%. And I dont even consider it for a moment about it at carryout (despite the rising expectation).
I read this completely fucked up thread on reddit with a good number of servers saying they basically expect 20%. Some say their b
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I give tips only in cash.
I know people are often badly paid. Giving the "tip" to the company first in the "hope" they give the tip to the delivery guy is nonsense.
Tipping of course is not the norm, but if one does a good service, e.g. delivering a pizza while it is still hot, I don't mind to give him/her a small tip.
Funnily I mostly live in countries where people usually don't tip, France and Thailand e.g.
Easy solution, end tipping wages (Score:2)
minimum-wage very not free lunch (Score:2)
You do know that this drives people who can't deliver enough value to deserve minimum wage out of the (legal) workforce, altogether?
Of course, the corporation (which might be a Mom and Pop shop) can always jack up the prices across the board on their lunch menu, but then who is going to steer Joe or Jane Schmoe with a cattle prod to pay two or three dollars extra for lunch every day on a daily basis?
What actually ends up happening is that marginal kiosks fold, and more people start to p
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I neglected to write "subsidized internship programs" believing that was implicit, but then my spider sense stubbed its toe on the upturned corner of a small throw rug.
And if they don't make enough tips (Score:1)
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Yeah, but in this case the "performance" is collection of tips.
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Yes they will supplement. That's literally law regarding tips. Will they fire? Separate question.
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No, that's not "literally law regarding tips". You are thinking of the legally mandated minimum wage. That's not what this is about. This is about how (as it states in the summary) "Amazon guarantees third-party drivers for its Flex program a minimum of $18 to $25 per hour". There is no law regarding tips that concerns anything amazon has guaranteed over the minimum wage. That comes purely down to contract law...what are the terms of the "guarantee" in the employment contract.
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... Will Amazon supplement their income to reach the guaranteed minimum income
Yes. They guarantee a minimum income. Income is wages+tips. This is exactly the same as it works in restaurants and other businesses. There is nothing underhanded or sneaky about what Amazon is doing. It is normal business practice.
or will they fire the underperformer?
Probably. If you are not good at a job, you should go find a different job that you are good at.
Re:And if they don't make enough tips (Score:5, Insightful)
Income is wages+tips.
It presumably is in the USA, which is how Amazon get away with this. It isn't in places such as the UK [www.gov.uk], where that practice would be illegal. After all, the supposed reason for tipping is to get better service; how would that work if the person providing the service doesn't get the tip?
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A guaranteed minimum income is not minimum wage. As the person to whom you replied correctly stated, income is wages plus other sources of funds, e.g. tips.
National minimum wage only applies to the wage portion of that equation. A guaranteed income would sensibly apply to the income part of that equation.
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Are you saying Amazon takes person A's tips and uses it to supplement person B's wages?
In effect, yes. If the person doesn't make minimum wage, the difference is effectively deducted from their tips. And it was going on in the UK too, but there was an outcry about it when it became public knowledge. Just because something has been going on for ages doesn't mean it's right, especially if the victims are those who don't have much power or influence.
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Income is wages+tips.
No it is not.
In US they try to subtract the tips from the wage, and get away with it.
In some countries tips are actually income.
In Germany tips are a "gift" from the customer to the service provider and are not counted as income and are not taxed (since 2012, before that it was a grey area).
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In Germany tips are a "gift"
TFA isn't about Germany. It is about America.
Tipping is America is completely different from other countries. It is basically a tax, and has little relation to quality of service. This is, of course, stupid, but that's the way it is, and blaming Amazon for America's tipping culture is silly.
Visitors to America are often confusing by tipping. They expect it to make sense. It doesn't.
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I wouldn't call it a tax per se. If my server does a bad job or the whole dining experience went poorly, I do not tip. If the server doesn't make tips, they will be paid minimum wage.
Most of the time I'll glad tip 15% or a bit more if the server has a personality and is actually making sure drinks are topped off and generally not ignoring us.
Most servers do just fine. Most get that tip.
Re: And if they don't make enough tips (Score:2)
They guarantee a minimum income. Income is wages+tips. This is exactly the same as it works in restaurants and other businesses. There is nothing underhanded or sneaky about what Amazon is doing. It is normal business practice.
Unless, like many people, you are clueless as to how the world really looks and you simply have emotional reactions to things you don't understand.
Amazon didn't offer the 'flex' workers $18-25/hr PLUS tips, it said their workers would make $18-25/hr at a job that potentially includes collecting tips.
By saying 'income' Amazon says the worker will earn $18-25/hr. Do high-end restaurants woo new servers by promising them $2.35/hr, or by telling them what previous servers earn in tips? That's all Amazon is doin
Amazon appears to be a poorly-managed company. (Score:2)
Jeff Bezos, CEO of Amazon, seems to have a poorly-managed life. He was having sex with a woman besides his wife. [nytimes.com] Now his wife gets half of his money, [observer.com] more than $65 billion. [forbes.com]
Knowing the sloppiness around Jeff Bezos, would you go into sub-orbital space with Blue Origins [spacenews.com], risking your life to be a tourist?
How will Jeff Bezos losin
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Look I think Amazon are scummy and Bezos is a dick.
Jeff Bezos, CEO of Amazon, seems to have a poorly-managed life. He was having sex with a woman besides his wife. Now his wife gets half of his money, more than $65 billion.
They were together before they got rich so it's quite clear the assets should be split 50/50 regardless of the reason for a split.
After that point why on earth wouldn't they split if they no longer wanted be togther? It'd be perverse if being the richest person in the world meant you cou
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it's quite clear the assets should be split 50/50
No. It's very likely that they will be but I see no reasons why they should be.
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No. It's very likely that they will be but I see no reasons why they should be.
People build their lives together and support each other, so you can't separate who did what, because both people are working towards a common goal. She supported him financially when he started Amazon.
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Jeff Bezos, CEO of Amazon, seems to have a poorly-managed life. He was having sex with a woman besides his wife. [nytimes.com] Now his wife gets half of his money, [observer.com] more than $65 billion. [forbes.com]
Are you retarded?
Who cares who has sex with whom?
Only idiots with no sex life I guess.
Good luck with your wife/husband and future sex, idiot.
Re: Amazon appears to be a poorly-managed company. (Score:2)
You are looking at it the wrong way, he got to bang the other woman and he has $65BN. After about $10BN it all becomes the same, I suspect.
Wait a minute... (Score:2)
We're expected to tip the damn Amazon delivery drivers? The poorly-trained guys Amazon hires so they don't have to pay UPS and FedEx, who train their drivers and pay them a decent wage?
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No, they're talking about the Amazon Prime Now drivers and the Amazon Fresh drivers. Like with Uber Eats, DoorDash, InstaCart and all the rest of these services, they take the tips that customers give intending it to be on top of their pay -- and use those tips to cover their *base pay*. It's nasty Basically, let's say I tell you that you'll get $20/hr for driving deliveries for my company. Now let's say I give you 4$ per delivery. But let's say you're only able to make two deliveries during the hour you're
Re: (Score:2, Interesting)
This is why the tipping culture needs to end. Employers need to pay employees a fair wage without tips. Consumers shouldn't have to worry about mandatory tips for services they already paid for. It seems just about everything that involves a human these days involves a tip; it's becoming ridiculous. Everyone but the employer is being shafted.
Nobody tips me to show up at the office every day to do my job so why should I tip someone to deliver my groceries which is their job? The one exception being is if the
Re: Wait a minute... (Score:2)
Does your employer pay you $2-3/hr?
Do you deliver goods/services directly to people?
Do you do so in a way that not only reflects well on the business, but also encourages the customer to return to the establishment again?
Or do you make $60K/yr sitting in a cubicle performing a task too trivial to automate?
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The alternative is what has been going on -- people without enough to live are sponsored by the Federal govt, which costs taxpayers, and companies are pushing automa
Re:Wait a minute... (Score:5, Interesting)
Cash is still a thing. If you want to tip, don't do it using the app. Amazon can't figure in tips it doesn't know about, right?
When I pay by card in a US restaurant, I try to avoid tipping using the "add X%" button and leave cash on the table instead because I don't trust the owners not to rip off the waitress in some fashion or another.
BTW, in Sweden, there's no such thing as a "tipped" sub-minimum wage for restaurant workers, and no such thing as tips, either.
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In Sweden tips are not regulated.
And most of the time the salary is supposed or are decent enough to give you a decent income.
Tipping culture collapsed in the early 1990's since business dinners got more checkups both from tax authorities and then company finance departments to find excessive costs or too much alcohol on a dinner.
The unwritten law that everyone assumes work in Sweden is that tips goes to the waiter, etc.
Some places have a tip collection so the total tips from all working that evening will g
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Hey dumbass, don't take jobs that can't even bother to offer minimum wage.
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I used to cook in several different restaurants...
So did I, and we in the kitchen always got at least minimum wage, whereas the waitstaff never did.
Slightly off-topic: There was one place I worked where the waitress occasionally would bring me 5 or 10 dollars from a customer who wanted to thank me for how well I broiled the lobster, and I still get praise from dinner guests when I cook one for them. Punch line: I can't eat lobster--I'm highly allergic to crustaceans--so to this day I'm damned if I know how I do it.
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I try to avoid tipping using the "add X%" button and leave cash on the table instead because I don't trust the owners not to rip off the waitress in some fashion or another.
I’ve caught too many people trying to steal cash tips to ever leave a tip on the table.
On the plus side, it’s very easy to make trouble for someone who’s trying to discreetly life money off a table when they think no one is looking.
Re:Wait a minute... (Score:5, Insightful)
No, they're talking about the Amazon Prime Now drivers and the Amazon Fresh drivers.
So basically delivery drivers. We're expected to tip delivery drivers?
No. Simple flat basic no. They've been fucking paid for delivering my package, they've delivered it, now they can go and deliver someone else's.
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We're expected to tip delivery drivers?
This is easy. Are they delivering food?? Yes, you tip. Are they delivering packages? No, you don't tip... unless it's Christmas - especially Christmas Day.
WAKE UP USA!!! (Score:2, Insightful)
When is the USA going to wake up and just pay your workers properly and get rid of mandatory tipping??? Your backwards arsed pay system and pricing schedule is fucked and deceptive!!! How about having some conviction in your pricing and advertising the real cost to the customer??
Pay your staff properly and if they give shit service, fire their arse!! That's how it works in the rest of the civilised world..
Yeah I'm an Aussie.. you know that place down under where you are told exactly what the price is and w
WAKE UP AUSTRALIA!!!! (Score:2)
3rd world (Score:1)
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Yes... however in there's a difference. When you tip a waiter $10, you expect him to be $10 richer. You don't expect the restaurant owner to be $10 richer. Even if you think the minimum wage for waiters should be $15, it's not.
A tip is a contribution to the employee's standard of living, not the owner's. It's a fair bet that anyone who tips an Amazon driver thinks he's helping out a low wage employee, not Jeff Bezos.
Any business which steals employees tips, either directly or indirectly, deserves shami
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Found the libtard.
I, on the other hand, am still looking for a Republican who can argue like a grown up.
Re: Huh? This is completely normal. (Score:2)
How else can the employer withhold required taxes from tips? Tips aren't tax-free.
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The server is supposed to report his tip earnings.
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If that owner doesn't want to pay at least minimum wage to their workers, they can't do all the work themselves. The tip really should go to the server, which is the only reason the customer left it in the first place.
If the owner is pooling all the tips, then dishing out just enough to each worker to cover minimum wage and pocketing the rest, that's stealing a tip.
If the owner is pooling the tips and then dividing them out per each employees share, that's at least fair to the workers. The business owner sh
Re: Tip in cash (Score:2)
I think these are Gig/commission-based jobs, that's why the pay is fungible.
sounds like a DOL complaint and lawsuit (Score:2)
If someone is on the clock for 40 hours in a work week and you only pay them for 30, this is a standard complaint handled by Department of Labor. This can quickly turn into a class-action lawsuit filed by all Amazon workers. They should probably quit this practice while they are ahead.
Re: sounds like a DOL complaint and lawsuit (Score:2)
It's a crime, it's exactly what the govt agency should be spending its time on.
Re: Amazon theft? (Score:2)
The tip is paid with credit card, collected by amazon, reported to IRS, and taxes are withheld.
That's the law - not theft.
Direct deposit! (Score:5, Insightful)
It's amazing to see how far the Slashdot community has come in the past 20 years or so. It used to be a group of nerds (of all kinds) who were mostly anti-mega-corporation and pro-privacy.And now, most Slashdotters just can't wait to give all of their money and all of their personal information to just a few giant mega companies in exchange for a little bit of (perceived) convenience.
How is this different? (Score:4)
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Re: I confused... (Score:2)
Amazon Prime Now (in very few markets, delivery in a few hours) and Amazon grocery delivery are the only 'tip-worthy' delivery options.
if it's cash... (Score:1)
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words (Score:2)
>>Amazon insists that drivers [eventually] receive the entirety of their tips
This looks like a good place to cram a solution to a behavior lots of companies seem to be enjoying: They are receiving the tips. Followup transactions don't change who was recipient to a sum of money the consumer passed out.
Admittedly, the fine print may say that clicking OK on a lot of boxes does not designate the driver as recipient. By the letter of the law, anyway. At any rate, it seems like the chink in the sleazy armor
Can't imagine tipping them in the first place (Score:2)
If I agree to pay a certain about, for a certain service, and they provide that service as advertised, why exactly am I supposed to feel any obligation to tip the person doing their job in an adequate manner?