(The Center Square) – Walmart has agreed to pay more than $2.1 million and make changes to its Spark Driver platform in Louisiana after Attorney General Liz Murrill accused the retail giant of misleading delivery drivers about how much they would earn.
The agreement requires Walmart to pay $1,052,282.22 to the state and confirms the company has already paid another $1,052,282.22 in restitution to Louisiana Spark drivers. If Walmart falsely reports its compliance with the agreement, it could face an additional $1 million civil penalty.
The settlement stems from the state’s investigation into Walmart’s Spark Driver platform, which connects independent contractors with customers who order from the retail giant’s local stores.
According to the attorney general, some drivers accepted deliveries expecting to receive a certain amount in pay, tips or bonuses, only to earn less than what had been advertised. The state also says Walmart told customers their tips would go entirely to drivers when that was not always the case.
“Walmart used misleading earnings claims to entice drivers into signing up for and accepting delivery offers,” Murrill said in a statement. “Drivers deserve transparency and honesty about how much they’ll be paid, and customers deserve confidence that their tips are reaching the workers they intended to support.”
Walmart denied any wrongdoing.
As part of the settlement, Walmart agreed to change how it oversees driver pay in the state. The company must establish an earnings verification program, track any underpayments, maintain records for 10 years and submit compliance reports to the attorney general.
The agreement also limits when Walmart can reduce a driver’s expected earnings after a delivery has been accepted. In most cases, changes are allowed only if a customer modifies or cancels an order or under other limited circumstances outlined in the agreement.
In addition, Walmart agreed not to mislead drivers or customers about estimated earnings, travel distance, delivery times, incentive qualifications, customer tips or other key details related to delivery offers.
