Finally. This dispute on Amazon allegedly improperly withholding customer tips has been going on since 2021, and it is only on Tuesday when Amazon Flex and the drivers involved have reached the settlement stage.
The world’s number one eCommerce platform, along with some of Amazon Flex’s delivery drivers, spoke with a federal judge in Seattle last Tuesday that the case has reached the settlement stage.
In the filing, Amazon and the five identified drivers stated that they are finalizing the settlement terms, requesting that the court pause the case while the agreement is completed. The parties stated they are looking to submit dismissal paperwork within a month, and additional time, if needed, will be provided.
The judge, Barbara Rothstein, responded by halting all deadlines and canceling the pending motions, which include a request filed in 2025 regarding a certain claim and classification for nearly 3,500 drivers in the state.
It was in early 2021 when the lawsuit was filed, alleging that Amazon violated consumer protection laws by not being able to honor representations that drivers using Flex would receive tips in their full amount from the customers. The drivers are saying that Amazon is using those tips to subsidize pay instead of passing them through as promised. The Ridesharing Forum team has passed through this update previously.
The case then reached the Ninth Circuit, which upheld the decision of the lower court, refusing to force the dispute into arbitration. Later, the United States Supreme Court declined to review the ruling.
Midway through last 2024, Judge Rothstein declined to certify a nationwide class that covers over 150,000 Flex drivers, finding that most had already received compensation through a separate $61.7 million settlement Amazon reached with federal regulators over similar allegations.
Then, a plaintiff sought to pursue the claims under Massachusetts law, arguing that state statutes could pave the way for enhanced damages beyond what has been provided through the federal settlement. The request, along with other pending motions, has already been set aside while settlement talks go on.
Furthermore, Amazon had likewise asked the court to delay proceedings pending guidance from the United States Supreme Court in an unrelated case, which examines whether specific drivers fall outside federal arbitration requirements. The judge stated those issues could be revisited if the settlement does not move forward.
If the agreement is finalized, the case is to be dismissed. Otherwise, the court is saying the parties may refile their motions and resume litigation. For more delivery news, keep browsing this Ridesharing Forum site.