Bulletins

Amazon to pay $61.7 million to settle FTC charges

Amazon to pay $61.7 million to settle FTC charges
Amazon earnings: Strong sales, but costs are going up

The FTC alleged Amazon failed to pay its Flex drivers the full amount of tips they were owed, and that it amounted to a deceptive business practices. The $61.7 million represents the amount that Amazon allegedly withheld from its drivers over a two and a half year period – and now, the agency will use the settlement to refund drivers who were affected.

Amazon attracted drivers by promising them $18–$25 per hour plus "100%" of the tips they received, according to the FTC's complaint. But ultimately, the company began to divert 30% of those tips back to itself.

"The conduct alleged in the complaint is outrageous," said acting FTC Chairwoman Rebecca Slaughter and FTC Commissioner Noah Phillips in a joint statement.

The FTC said Amazon stopped using the new pricing model in 2019, "after the company received notice of the FTC's investigation."

FTC Commissioner Rohit Chopra called on the agency, suggesting it to go even farther and use its civil penalty authority against Amazon in order to hold the company accountable. "Companies should succeed only when they compete, not when they cheat or abuse their power," Chopra wrote. "While Amazon.com is one of the largest, most powerful, and most feared firms in the world, the company cannot be above the law. Regulators and enforcers in the United States and around the globe can no longer turn a blind eye."

 Emily Birnbaum

Emily Birnbaum ( @birnbaum_e) is a former tech policy reporter with Protocol. Her coverage focuses on the U.S. government's attempts to regulate one of the most powerful industries in the world, with a focus on antitrust, privacy and politics. Previously, she worked as a tech policy reporter with The Hill after spending several months as a breaking news reporter. She is a Bethesda, Maryland native and proud Kenyon College alumna.

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The tweet came from Jessica Rose, a developer relations advocate, founder of a meetup series for programmers and aspiring programmers and co-founder of Trans*Code, a hacker org devoted to drawing attention to transgender issues and opportunities.

Rose’s “hard no” was to those so-called benefits that have been around since time immemorial (or at least since the dot-com era). “Don't give me food or hammocks or video games, just let me work remotely or go home on time,” said Rose.

'Don’t touch me'

The tweet thread was full of varied responses, but the paradox of unlimited vacation was the clear favorite. “Wow, people are just so suspicious about unlimited paid time off,” Rose told Protocol when we caught up with her to ask about the tweet.

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If employees are going to be suspicious of whatever perks you offer, why offer any perks at all?

“So I'm aware of how wonderfully spoiled it is to complain about perks being given out in some kinds of tech workplaces,” said Rose. “I'm the most unimpressed by ‘perks’ which either directly undermine employment rights (like unlimited paid time off can do in some regions) or are intended to throw work/life balance out of kilter in the workplace's favor.”

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Your best interests or mine? Why can’t it be both? ¯\_(ツ)_/¯

A director of engineering at Google who formerly worked at Microsoft and Zillow called employer-sponsored coaching an anti-perk. “I’ll spring for a coach who is looking out for my best interests, not the company’s, thanks,” she said, adding, “I know I am lucky to be offered this, but it always feels like a trap.”

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“Thoughtful, meaningful perks can benefit both employers and team members, by helping keep their team members happy and hopefully keep them in their role for longer,” Rose said.

Free SunChips < values-based work culture

Research shows that today’s employees don’t want snacks as much as they want work that aligns with their values, and that extends to benefits.

  • “I love work perks that demonstrate an employer's ethics and commitment to meaningfully supporting their team members,” said Rose.
  • These benefits can include big structural benefits like location-agnostic pay and support for different kinds of employee leave, but also smaller things like “sending people a small bonus on their birthday to buy a cake,” Rose added.
  • Rose also looks for “employers who don't subcontract out cleaning or security staff, to make sure that all of their team members get access to the same kinds of pay and support.”

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And think twice about listing your game room in your job description, tweeted a product designer from Miro:

“When they advertise a ping-pong table in the job listing, it's a huge 🚩 for me. And I love ping-pong. If a silly perk like this [is] such a relevant part of your benefits package, that says a lot about what the company values, and likely its culture."

A version of this story appeared in Protocol's Workplace newsletter. Sign up here to get it in your inbox three times a week.

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“The impression I have is that it’s basically not enforced,” the employee said. The Google contractor said attendance varied across different teams, noting that while some of their teammates go to the office three days a week, most only go in once. (Neither Google nor Apple returned emails inquiring about how their hybrid policies are enforced.)

Sundar Pichai’s plan to make Google “20% more efficient” may lead nervous workers to choose to go to the office more often. (An August survey found that CBRE tenants were “evenly split” on whether a recession would drive more workers to the office out of anxiety for their job security.)

As of now, most companies’ hybrid requirements are only enforced as a “very soft mandate,” said Brian Kropp, distinguished VP of research at Gartner. About half of companies with a hybrid mandate are tracking office attendance, Kropp said, but even those that are doing so “have no real plans to fire people for not coming to the office, as long as they’re getting their work done.”

More than 40% of HR leaders surveyed by Gartner last month said they weren’t tracking office attendance. Thirty-five percent said they were gathering attendance data from key fob or badge swipes, while 22% said managers were tracking their teams’ attendance. Another 10% said employees were self-reporting their attendance.

Companies that selectively enforce attendance requirements may wind up with unfair outcomes, Kropp said.

“If you have a mandated set of days where you have to come to the office, but it’s unevenly enforced across the company, then you run into issues of fairness,” Kropp said. “That just creates more variability across the company, which then creates more risk as well in terms of that inconsistency.”

And while flexibility puts companies at an advantage when it comes to competing for talent, it also requires more sophisticated management, Kropp said. “The question you should really be asking is: Does our managerial population, on average, have the capability to manage much more flexibility, or not?” Kropp said. “If the answer is ‘yes, they do,’ you should push for as much flexibility as you can.”

To run high-performing teams in a flexible environment, managers need to be “half social worker, half engineer,” Kropp said. That means more empathy and more capacity for planning and organization.

While companies may seem settled into their hybrid ways of working, many leaders are leaving policies open to change with time rather than overcommitting themselves. The world is unpredictable, as we’ve learned in the last 2.5 years. “A lot of these executives — the way that they’re framing it now is, ‘This is our hybrid strategy for now, and it could evolve and could change,’” Kropp said.

Amazon falls into that category. As Andy Jassy put it at the Code Conference on Wednesday, Amazon doesn’t have a plan to force employees back to the office: “We’re going to proceed adaptively as we learn.”

A version of this story appeared in Protocol's Workplace newsletter. Sign up here to get it in your inbox three times a week.
Bulletins