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Walmart agrees to pay $16 million to its Spark delivery drivers to settle claims it misled them over tips and pay
Business Insider· 2026-02-26 19:07
Core Viewpoint - Walmart has agreed to a $100 million settlement with the Federal Trade Commission (FTC) over misleading claims regarding pay and tips for Spark drivers, which includes a $16.2 million fund for affected drivers [1][2]. Group 1: Settlement Details - Walmart will pay approximately $16 million to Spark drivers as part of a settlement addressing claims of misleading pay information [1]. - The FTC stated that Walmart misled drivers by claiming they would earn more in base pay than they actually did and falsely asserted that 100% of customer tips would go to drivers [1][3]. - The settlement includes a "driver fund" that will distribute $16.2 million to drivers whose actual pay was lower than what was promised [1]. Group 2: Notification Issues - The FTC reported that Walmart often failed to notify drivers about changes in base pay and tips, or only informed them after they completed deliveries [2]. - Walmart did not inform drivers that the advertised tip amount was not preauthorized, meaning they would not receive the tip if the customer could not cover it [3]. Group 3: Tip Distribution Practices - Walmart sometimes split customer tips across multiple drivers for orders requiring multiple deliveries, a practice that was not communicated to drivers [4]. - Other gig economy companies, such as DoorDash, have faced similar allegations regarding the use of tips to offset base pay, with DoorDash settling for $16.75 million for its delivery workers in New York [4].