Most people ordering groceries through Walmart probably aren’t thinking too much about how the person delivering their order gets paid. However, according to Texas officials, some delivery drivers may not have been receiving the earnings they were originally promised.
This has prompted an investigation that has now resulted in Walmart agreeing to pay more than $13 million. The settlement centers around Walmart’s Spark Driver Program, which uses independent drivers to deliver groceries from local stores.
While Walmart has denied any wrongdoing, the company has agreed to compensate affected drivers and to change how it presents earnings, tips, and bonuses in the future. Honestly, all I know about Walmart drivers is the Tracy Morgan incident in 2014 on the New Jersey Turnpike.
According to the initial report, the Walmart semitruck driver who hit Morgan’s tour bus, killing one comedian and giving Morgan a severe traumatic brain injury, had not slept in over 24 hours. This led to the discovery that Walmart had been negligent in enforcing FMCSA’s on-duty and off-duty limits.
Texas Says Driver Earnings Were Misrepresented for Years
The above video was posted to the KENS 5 YouTube channel. It details court documents filed in Collin County, Texas, that state Walmart had been misrepresenting driver earnings since at least 2021. Officials claimed that drivers were shown delivery offers that included customer tips they were led to believe they would receive in full, only for those tips to be divided among multiple drivers or, in some instances, not paid as originally agreed.
The investigation also accused Walmart of reducing a driver’s expected earnings after a delivery offer had already been accepted if the order was changed. It’s also being said that some incentive and bonus opportunities were presented in a misleading way, making it difficult for drivers to accurately determine how much they would actually earn for completing deliveries.
Rather than continue litigating the case, Walmart settled with the State of Texas while continuing to deny violating any laws. I guess that’s what happens when you have to dish out $6.69 million in restitution to affected Texas Spark drivers.
Walmart will also pay another $6.69 million to the state to cover civil penalties, attorneys’ fees, and investigative costs, bringing the total settlement to more than $13.3 million.
Walmart Agreed To Change How It Displays Driver Earnings
Walmart is also committed to making other changes that are aimed at making driver pay more transparent. Going forward, the company agreed not to reduce a driver’s promised earnings after a delivery has been accepted except under specific circumstances.
Interestingly, these particular circumstances were not shared. Walmart also agreed not to misrepresent estimated earnings, customer tips, or bonus opportunities, and it will maintain an earnings verification program that will remain under state oversight for the next ten years. It’s unclear what is expected to happen after those ten years.
The Texas Attorney General, Ken Paxton, feels that the outcome is reasonable, saying, “I have secured millions of dollars for delivery drivers from Walmart to ensure that these hardworking Texans receive the tips and wages they deserve. Any big corporation that promises certain offers and pays in exchange for services must honor those promises,” according to Fox 4 News.
It also remains unclear exactly how many Texas Spark drivers were affected or whether there are any remaining restitution funds available to be claimed. Still, for drivers who rely on delivery work to supplement or earn their income, the settlement serves as a reminder that companies can face scrutiny when advertised pay and actual earnings don’t line up.