Walmart to pay $13M to settle Texas investigation into delivery driver pay
Shoppers wait in line to pay for their purchases at a Walmart store in Los Angeles, California (Credit: ROBYN BECK/AFP via Getty Images)
COLLIN COUNTY, Texas - Walmart has agreed to pay more than $13 million and change how it compensates drivers in its Spark Driver Program, a program used to deliver groceries from local Walmart locations.
The amount is to settle allegations from the State of Texas that the company misled drivers about their earnings.
Walmart delivery driver settlement breakdown
A truck enters a large regional Walmart distribution center on June 6, 2019 in Washington, Utah. (Photo by George Frey/Getty Images)
What we know:
The settlement resolves a state investigation into Walmart's delivery program, where Walmart denies any wrongdoing or violation of Texas law as part of the settlement agreement.
The agreement also requires Walmart to adopt new safeguards designed to ensure drivers receive the compensation advertised to them.
Under the settlement, Walmart has already paid approximately $6.69 million in restitution to affected Texas drivers. The company also agreed to pay an additional $6.69 million to the state for civil penalties, attorneys' fees and costs, bringing the total settlement value to more than $13.3 million.
How Walmart allegedly misrepresented delivery driver pay
FILE-In this photo illustration, a person holds a wallet filled with $20 dollar bills. (Photo Illustration by Thomas Trutschel/Photothek via Getty Images)
Dig deeper:
Court documents filed in Collin County allege that, since at least 2021, Walmart misrepresented driver earnings in multiple ways, including promising drivers the full amount of customer tips that were later divided among multiple drivers or not paid at all in some cases. The state also alleged Walmart reduced pay on modified delivery offers without notifying drivers and provided misleading information about incentive programs.
Walmart denied these allegations but has agreed to the following:
- Not to reduce a driver's promised earnings after a delivery offer has been accepted except under specified circumstances.
- To avoid misrepresenting estimated pay, tips or incentive opportunities
- To maintain an earnings verification program subject to state oversight for 10 years.
Texas Attorney General and Walmart respond
In the suit, Paxton claims that pandemic-era changes to election procedures in those states violated federal law and allowed voter fraud, which election officials have rejected. (Credit: Bob Daemmrich for The Texas Tribune)
What they're saying:
According to Paxton's office, the investigation found Walmart made false representations to drivers about compensation, including customer tips, base pay and incentive opportunities.
"I have secured millions of dollars for delivery drivers from Walmart to ensure that these hardworking Texans receive the tips and wages they deserve," Paxton said in a statement. "Any big corporation that promises certain offers and pays in exchange for services must honor those promises."
What's next:
The settlement was filed as an Assurance of Voluntary Compliance under the Texas Deceptive Trade Practices Act and states that Walmart does not admit liability or any violation of law.
The Source: Information in this article was provided by the Texas Attorney General's Office.