B2B Payments

Amazon Addresses Delivery Driver Payroll Mishaps

Amazon is making changes to how its parcel delivery drivers get paid, according to Business Insider reports on Wednesday (Oct. 3).

The eCommerce conglomerate is reportedly requiring all third-party courier companies to keep electronic records of driver time and attendance. Specifically, these companies must use ADP payroll and time tracking software. Amazon will also reportedly prohibit these companies from paying a flat daily rate to drivers, instead requiring hourly pay.

The publication revealed Amazon’s plans after viewing internal emails from the company.

“Employees rely on you and expect you to pay them on time and reliably without error,” the email reportedly stated. “That’s why Amazon is making an important change that requires your immediate attention.”

The requirements will come into effect on Nov. 19, reports said.

Business Insider noted that the move by Amazon follows an investigation from the publication that found instances of erroneous or missing wages for delivery drivers, including a lack of overtime payments. A lawsuit was filed last month by more than 200 delivery drivers claiming they are missing wages from Amazon and their third-party courier partners. The class action was filed in a Pennsylvania court.

“Payroll can be complicated, but it’s one of the most important parts of running a business,” the email noted.

In a statement sent to the publication, a spokesperson for Amazon said the company recognizes the need to provide greater support for its small business customers.

“As a result, we have implemented new programs, such as electronic time-tracking that enables transparency and accuracy of pay for drivers, to ensure small delivery businesses serving Amazon customers have the tools they need to deliver a great customer and employee experience.”

News of the company’s delivery payroll policy changes came the same day Amazon announced it is increasing its minimum wage for U.S. employees to $15 per hour, though the increase will not apply to the drivers of its delivery service partners, reports said.


Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the November 2019 Mobile Order-Ahead Report, PYMNTS talks with Dan Wheeler, Wahlburgers’ SVP, on how the QSR balances security and seamlessness to secure its recently launched WahlClub loyalty program.