AUSTIN – Texas Attorney General Ken Paxton has reached a $13.3 million settlement with Walmart to ensure the company provides transparent and accurate compensation information to delivery drivers participating in its Spark Driver program.
The settlement, announced July 6, will repay affected Texans and requires Walmart to implement honest compensation practices going forward.
Paxton
“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. “Any big corporation that promises certain offers and pay in exchange for services must honor those promises.
“I am always proud to stand up for my constituents to make sure that they are fairly compensated for their hard work.”
Walmart owns and operates the Spark Driver Program, which is a delivery service that delivers groceries and goods from local Walmart stores or warehouses directly to customer’s chosen location. Through the program, Walmart offers compensation opportunities to individuals who serve as delivery drivers.
Investigations revealed Walmart made false representations to drivers regarding their pay, including pre-tips selected by customers at checkout, base pay and special incentive earnings opportunities.
For example, Walmart failed to provide drivers with customer tips in certain instances, altered base pay amounts for deliveries after drivers had accepted offers, and misrepresented the requirements drivers needed to satisfy to qualify for additional earnings opportunities.
Half of the settlement amount has been paid out directly to delivery drivers affected by Walmart’s deceptive marketing and practices. The settlement also requires Walmart take measures to ensure that drivers get paid fairly and in line with what is being marketed to them.
Paxton said his office will continue to review records and marketing material to ensure that Walmart does not underpay or deceive delivery drivers in the future.
The settlement resolves a state investigation into Walmart’s delivery program, and Walmart denies any wrongdoing or violation of Texas law as part of the settlement agreement.
