Walmart has agreed to pay more than $13 million and overhaul how it communicates pay to delivery drivers in Texas, resolving a state investigation that alleged the retailer misled workers about tips, base pay and incentive earnings through its Spark Driver platform.
The settlement, announced Monday by Texas Attorney General Ken Paxton, provides approximately $6.69 million in restitution to affected Texas Spark drivers while requiring Walmart to pay an equal amount in civil penalties, attorneys' fees and costs to the state. In total, the agreement exceeds $13.3 million.
The settlement resolves allegations that Walmart violated the Texas Deceptive Trade Practices Act through its Spark Driver Program, which provides same-day grocery and merchandise deliveries from Walmart stores and warehouses. Walmart denied any wrongdoing and said the agreement does not constitute an admission of liability.
Spark is Walmart's (Nasdaq: WMT) last-mile delivery platform, connecting independent contractors with grocery and merchandise delivery opportunities from local Walmart stores.
According to the ******* urance of Voluntary Compliance filed in Collin County, Texas, investigators alleged Walmart made misleading representations to delivery drivers dating back to at least 2021 involving three primary categories of compensation: customer tips, base pay and incentive bonuses.
The settlement, announced Monday by Texas Attorney General Ken Paxton, provides approximately $6.69 million in restitution to affected Texas Spark drivers while requiring Walmart to pay an equal amount in civil penalties, attorneys' fees and costs to the state. In total, the agreement exceeds $13.3 million.
The settlement resolves allegations that Walmart violated the Texas Deceptive Trade Practices Act through its Spark Driver Program, which provides same-day grocery and merchandise deliveries from Walmart stores and warehouses. Walmart denied any wrongdoing and said the agreement does not constitute an admission of liability.
Spark is Walmart's (Nasdaq: WMT) last-mile delivery platform, connecting independent contractors with grocery and merchandise delivery opportunities from local Walmart stores.
According to the ******* urance of Voluntary Compliance filed in Collin County, Texas, investigators alleged Walmart made misleading representations to delivery drivers dating back to at least 2021 involving three primary categories of compensation: customer tips, base pay and incentive bonuses.
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