Overview
- Walmart will pay $100 million to resolve allegations it misled Spark drivers about base pay, incentives, and tips, and deceived customers about tip distribution.
- The settlement allocates $79 million to drivers, $10 million to the FTC for customer refunds, and $11 million to participating states, according to state officials.
- Terms require an earnings verification program, a prohibition on modifying pay after an offer is accepted except in limited cases, and annual compliance reports to the FTC for 10 years.
- The FTC detailed practices such as showing full tips to multiple drivers on split orders, removing tips from some batch orders without notice, and reducing base pay after acceptance.
- States report payments beginning to flow, including about $1.4 million to drivers in Pennsylvania and $2 million in North Carolina, while Walmart says it has started compensating affected workers and updating procedures.