Summary
Walmart agreed to pay $100 million to settle claims that it misled delivery drivers about their pay and tips. The Federal Trade Commission (FTC) and 11 states announced the settlement, which will provide payouts to affected drivers. Walmart said it is improving its systems to be more transparent and fair.
Key Facts
- Walmart will pay $100 million due to claims it misled drivers about pay and tips.
- The settlement was announced by the FTC and a group of 11 states.
- Delivery drivers will receive $79 million from the settlement.
- Walmart had falsely informed customers that all tips would go directly to drivers.
- Problems with driver pay were linked to order splitting and delivery changes.
- Issues with driver pay began at least in 2021 and led to numerous complaints.
- The agreement includes an order preventing Walmart from altering initial job compensation offers, except in specific situations.
- Walmart started its Spark Driver service in 2018, which has over a million drivers.
