Texas Attorney General Ken Paxton announced a settlement with Walmart Inc. worth more than $13 million to resolve allegations that the retailer misled delivery drivers in its Spark Driver program about their compensation.
Half of the settlement funds have already been distributed to Texas drivers affected by the company’s practices, according to a press release issued by the Office of the Attorney General on July 6.
The Spark Driver program is a Walmart-operated delivery service that transports groceries and other goods from Walmart stores or warehouses to customer-selected locations. Drivers who sign up with the program receive compensation for completing deliveries.
According to the attorney general’s office, investigations found that Walmart made false statements to drivers about their earnings. Those alleged misrepresentations involved customer tips selected at checkout, base pay for deliveries, and eligibility for special incentive programs.
The office said that Walmart, in some cases, did not pass along customer tips to drivers, changed the base pay on deliveries after drivers had already accepted the offers, and provided inaccurate information about the requirements drivers had to meet to earn additional pay.
Under the terms of the settlement, Walmart must adopt compensation practices that align with what the company advertises to drivers. The attorney general’s office said it will continue reviewing Walmart’s records and marketing materials to guard against future underpayment or deception.
“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.”
The agreement was formalized in an Assurance of Voluntary Compliance, according to the attorney general’s office.
