Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
Colin Salao

Amazon pays a small price to resolve employee's death -- and it's not the first time

In May of this year, Caes Gruesbeck, a 20-year-old Amazon warehouse worker, died from injuries sustained after he became trapped under machinery at an Amazon distribution center in Fort Wayne, Indiana.

According to a report by the Wall Street Journal, Indiana safety officials issued Amazon with a serious safety citation after a few months of investigation, and fined the company the most it could under Indiana law: $7,000.

The company with a $1.54 trillion market cap didn't even have to pay five figures for the death of a young employee.

Related: Amazon tries to fix another major customer pain point

Amazon has faced a lot of backlash in the past for the way its handled employee safety and the little consequences its had to face. The WSJ reported several other instances in Indiana where an Amazon employee was killed at a warehouse, with sanctions ranging from as low as just $2,400 to as high as a measly $28,000.

The Occupational Safety and Health Administration (OSHA) has filed several cases against the massive e-commerce retailer, but the sheer volume of warehouses of Amazon makes it difficult to create swift action that's strong enough to create major change in the retailer's practice.

Related: Amazon is the target of a disturbing new claim from its employees

OSHA fines companies $12,741 for serious violations and $124,709 for repeat violations. But there are 22 states — including Indiana — who manage their own programs for health and safety — where the fines could be lower than those prescribed by the OSHA.

Indiana also restricts families from suing for wrongful death in civil court, according to the WSJ report.

Amazon's Maureen Lynch Vogel told the WSJ in an email that Amazon is "always investing in safety and our efforts are working" and the company takes "the safety and health of our employees very seriously."

She also said that Gruesbeck had up-to-date training and required safety equipment and that the the company cooperated notified OSHA and cooperated with the investigation.

TheStreet reached out to Amazon for additional comment but did not receive a response at the time of publishing.

Get exclusive access to portfolio managers and their proven investing strategies with Real Money Pro. Get started now.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.