Leaked email reveals Amazon is changing how delivery drivers are paid following reports of missing wages

AP/Stephan Savoia

Amazon is changing how delivery drivers are paid.

• Amazon is making changes to how delivery drivers are paid to "enable transparency and accuracy of pay," according to an internal company email.
• These drivers are managed by third-party courier companies that work out of Amazon facilities.
• The new requirements, which take effect November 19, follow a Business Insider investigation into Amazon's delivery system that revealed numerous reports of missing wages and lack of overtime payments.
• "Employees rely on you and expect you to pay them on time and reliably without error," Amazon's email reads in part. "That's why Amazon is making an important change that requires your immediate attention."

Amazon is making major changes to how some delivery drivers are paid to "enable transparency and accuracy of pay," according to a leaked internal email.

Amazon will soon require courier companies, which manage thousands of delivery drivers for the tech giant, to electronically track and record employees' hours using "time and attendance tracking" software provided by the payroll company ADP, according to the email, which was seen by Business Insider.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

The requirement, which takes effect November 19, follows a Business Insider investigation into Amazon's delivery system that revealed numerous reports of missing wages and lack of overtime payments.

Amazon will also soon prohibit courier companies from paying drivers a flat daily rate, according to the email. The companies, which Amazon calls delivery service partners, must now pay drivers by the hour, the email stated.

Amazon and one of its courier companies, TL Transportation, is currently facing a lawsuit claiming daily pay rates failed to properly compensate drivers for overtime hours.

"Payroll can be complicated but it's one of the most important parts of running a business as your employees rely on you and expect you to pay them on time and reliably without error," reads the email, which was sent to delivery service partners on Monday. "That's why Amazon is making an important change that requires your immediate attention."

The email did not mention anything about Amazon's plans, announced Tuesday, to increase its minimum wage to $15 an hour for all US employees.

The wage increase will not apply to employees of Amazon's delivery service partners.

In response to this story, Amazon released the following statement: "Over the years, we have worked with our partners, listened to their needs, and have come to recognize that small businesses sometimes need more support when scaling fast. 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."

Also read:

• Missing wages, grueling shifts, and bottles of urine: The disturbing accounts of Amazon delivery drivers may reveal the true human cost of "free" shipping
• 'Someone is going to die in this truck': Amazon drivers and managers describe harrowing deliveries inside trucks with 'bald tires,' broken mirrors, and faulty brakes
• Amazon plants fake packages in delivery trucks as part of an undercover ploy to 'trap' drivers who are stealing
• More than 200 delivery drivers are suing Amazon over claims of missing wages
• "We sped like crazy": Amazon delivery drivers say they feel pressure to drive dangerously, urinate in bottles, and sprint on the job