Texas Attorney General Ken Paxton (R) has secured a settlement with Walmart, requiring the company to pay more than $13 million and implement new transparency measures for delivery drivers participating in the Spark Driver program.
What is the settlement about?
Attorney General Ken Paxton announced a settlement with Walmart over its Spark Driver delivery program, alleging the company misled drivers about how much they would earn for completing deliveries.
According to the Attorney General's Office, investigations found Walmart made false or misleading representations regarding customer tips, base pay, and incentive opportunities offered to delivery drivers.
The settlement totals more than $13 million, with half of the funds being distributed directly to affected Texas drivers.
What did investigators find?
The Attorney General's Office alleged Walmart engaged in several deceptive compensation practices, including:
- Failing to provide drivers with customer tips in certain instances.
- Reducing base pay after drivers had already accepted delivery offers.
- Misrepresenting the requirements drivers needed to meet to earn incentive bonuses.
Officials said these practices resulted in some drivers receiving less compensation than they were initially promised.
What changes must Walmart make?
As part of the settlement, Walmart has agreed to implement measures designed to provide greater transparency and accuracy in how compensation is presented to Spark drivers.
The agreement also requires Walmart to:
- Honor advertised compensation offers.
- Provide accurate information regarding pay and incentives.
- Maintain records subject to review by the Texas Attorney General's Office to ensure continued compliance.
The Attorney General's Office said it will continue monitoring Walmart's marketing materials and compensation records going forward.
What Paxton is saying
AG Ken 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."
AG Paxton continued: "Any big corporation that promises certain offers and pay in exchange for services must honor those promises."
The Bottom Line
Attorney General Ken Paxton's settlement requires Walmart to pay more than $13 million while adopting new compensation transparency requirements for its Spark Driver program. State officials say the agreement will compensate affected Texas delivery drivers and help ensure future pay practices accurately reflect what drivers are promised.
